Generate pricing options

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What we call pricing option here is actually a possible pricing strategy. There are many possibilities: versioned, packaged, variable, dynamic, premium, penetration, skimming, freemium… The list is long and it is not possible to conclude that any of them is generally better or worse.

Each of these has historically been designed to take advantage of the opportunity of specific price insensitivity in target customers.

The most typical examples are when alternatives are difficult for sri lanka phone number list to compare, either because the product/service is complex or because of a lack of information at the point of sale. Other examples come from perishable products/services, such as food or tickets. It really all depends on the company in question.

The good news is that pricing options can be combined and aggregated to create new strategies. They are not necessarily mutually exclusive. Versioning, penetration, premium, and dynamic pricing can all be done at the same time. To generate possible options, we need to consider:

Customer needs.
Key sensitivity factors and then associate pricing strategies that can work with them.
The value propositions offered.
The key here is to be as specific as possible. The better you understand purchasing processes and decisions, the more specific and tailored your pricing can be, and the more opportunities there are to increase revenue.

The choice of how to structure markets, segments and channels is marketing strategy or corporate strategy.