MindMap Gallery Common price strategy pricing methods
A summary of common price strategies and pricing methods, a mind map to apply what you have learned
Edited at 2019-09-03 03:42:09This Valentine's Day brand marketing handbook provides businesses with five practical models, covering everything from creating offline experiences to driving online engagement. Whether you're a shopping mall, restaurant, or online brand, you'll find a suitable strategy: each model includes clear objectives and industry-specific guidelines, helping brands transform traffic into real sales and lasting emotional connections during this romantic season.
This Valentine's Day map illustrates love through 30 romantic possibilities, from the vintage charm of "handwritten love letters" to the urban landscape of "rooftop sunsets," from the tactile experience of a "pottery workshop" to the leisurely moments of "wine tasting at a vineyard"—offering a unique sense of occasion for every couple. Whether it's cozy, experiential, or luxurious, love always finds the most fitting expression. May you all find the perfect atmosphere for your love story.
The ice hockey schedule for the Milano Cortina 2026 Winter Olympics, featuring preliminary rounds, quarterfinals, and medal matches for both men's and women's tournaments from February 5–22. All game times are listed in Eastern Standard Time (EST).
This Valentine's Day brand marketing handbook provides businesses with five practical models, covering everything from creating offline experiences to driving online engagement. Whether you're a shopping mall, restaurant, or online brand, you'll find a suitable strategy: each model includes clear objectives and industry-specific guidelines, helping brands transform traffic into real sales and lasting emotional connections during this romantic season.
This Valentine's Day map illustrates love through 30 romantic possibilities, from the vintage charm of "handwritten love letters" to the urban landscape of "rooftop sunsets," from the tactile experience of a "pottery workshop" to the leisurely moments of "wine tasting at a vineyard"—offering a unique sense of occasion for every couple. Whether it's cozy, experiential, or luxurious, love always finds the most fitting expression. May you all find the perfect atmosphere for your love story.
The ice hockey schedule for the Milano Cortina 2026 Winter Olympics, featuring preliminary rounds, quarterfinals, and medal matches for both men's and women's tournaments from February 5–22. All game times are listed in Eastern Standard Time (EST).
Common price strategies
skimming pricing
Definition: Also known as high price method or skimming prices, that is, setting the price at a high level when a product just enters the market, so as to recover the investment as soon as possible and obtain considerable profits before competitors develop similar products. . Then as time goes by, gradually lower the price to allow the new product to enter the flexible market.
When can skimming be used?
Users who have accumulated enough, are not sensitive to price, and have certain purchasing power
Accumulate certain technical advantages
Supported by brand
For example, the new models released by Apple mobile phones
penetration pricing
Definition: Entering the market with a lower product price, the purpose is to accelerate market growth in the short term, sacrifice high gross profits in order to obtain higher sales volume and market share, thereby generating significant cost economic benefits, so that costs and prices can be Keep getting lower. Penetration price does not mean absolutely cheap, but relatively low relative to value.
When can penetration pricing be used?
High elasticity of demand (indicating that consumers are price sensitive)
For example, daily consumer goods
low marginal cost
For example, MINISO
Low prices can be achieved during the market introduction period (to seize the market)
For example, Xiaomi collects
tiered pricing
Interpretation: When purchasing within a certain quantity, it is one price, and when it exceeds a certain quantity, it is another price. If you draw a picture, the shape is like a ladder, either "step by step" or "step by step"
Step-by-step pricing
The more you use it, the more expensive it will be (such as water, electricity, gas and other public service fees)
Step-down pricing
The more you buy, the cheaper the price (such as the cost of the course you buy)
How to use the tiered pricing method?
The tiered discounts are not proportional. The higher the tier, the greater the discount.
The principle of diminishing marginal benefits, the higher the ladder, the harder it is to close a deal
The upper limit should be attractive
The lowest selling price must be able to bear the marginal cost
dynamic pricing method
Definition: A pricing strategy in which merchants flexibly adjust the prices of goods or services.
For example, Didi’s fare increase for evening peak vehicles
How to take advantage of dynamic pricing
Observe real-time needs
High demand raises prices, conversely lowers prices
Based on user behavior
Make use of price discrimination
Pricing based on customer consumption habits (based on consumer purchasing power and demand elasticity)
reverse pricing
Definition: Based on the market demand of the product and the final sales price acceptable to consumers, through price prediction, trial marketing, and evaluation, the enterprise first determines the retail price that consumers can accept and understand, and then works backwards to determine the wholesale price and ex-factory price. . Because the pricing procedure is opposite to the general cost pricing method, it is called the reverse pricing method.
How to use reverse pricing?
Price-sensitive users
Transaction price is not transparent
Reduce transaction costs