Cost is the most basic and important factor affecting product price. In general, cost is the lowest limit of product price

Whether the product price is appropriate or not is ultimately decided by the customer. Perception is greater than fact.

When setting prices, companies must also consider competitors' costs, prices, and market offerings. Consumers will judge the value of a product based on the prices competitors charge for similar products.

1. Maintain the survival of the enterprise:

2. Short-term profit maximization:

3. Market share leadership:

4. Leading product quality

1. Perfect competition:

2. Monopolistic competition:

3. Oligopoly competition:

4. Complete monopoly:

Macro-control

laws and regulations

cost oriented pricing

demand-based pricing

Competition Oriented Pricing

1. Skimming pricing strategy: refers to setting a very high price when a new product is launched in order to maximize profits.

2. Penetration pricing strategy: refers to setting a lower price when a new product is launched so that the product can penetrate quickly and expand market share.

3. Satisfactory pricing strategy: refers to adopting moderate prices when new products are launched so that consumers and enterprises are basically satisfied

1. Product line hierarchical pricing: refers to setting different prices for different products of the same product line according to their levels.

2. Alternative product pricing: It means that in addition to the main product, there are also some optional products, and these products can be priced flexibly.

3. Ancillary product pricing: refers to the complementary product structure in which the main product is sold at a low price, while the accessory products with high purchase frequency are sold at a high price.

4. Segment pricing: refers to charging a fixed fee and some variable usage fees for the same product.

5. By-product pricing: refers to the pricing of side products in the production process of the main product based on needs.

6. Product bundle pricing (package pricing): refers to combining several products and selling them at a reduced price.

1. Cash discount: Encourage customers to pay in advance.

2. Quantity discount: encourage customers to buy more.

3. Functional discounts: Encourage channel members to assist enterprises in completing certain market functions.

4. Seasonal discounts: Encourage customers to buy out of season.

5. Discount: This is another type of price reduction on the price list price, such as trade-in discount, promotional discount, etc.

1. Offer different prices to different customers;

2. Offer different prices to products with different styles;

3. Give different prices to different places or locations;

4. Give different prices to different seasons, periods and even different hours. (time)

1. FOB pricing: Free OnBoard means free on board (FOB price), which is commonly called free on board at the shipping port. Customers purchase a certain product at the ex-factory price. The seller is responsible for transporting the product to the place of origin. The cost and risk of crossing the vessel is the responsibility of the buyer

2. Unify shipping pricing. The seller delivers the product to the buyer's location and charges the same shipping fee to buyers regardless of distance. It is suitable for products where freight accounts for a small proportion of the product price, such as electronic components.

3. Regional pricing strategy. Sellers divide the entire market into several large areas, and charge the same freight for the same area.

4. Subsidy freight pricing strategy: The production company subsidizes part or all of the freight, or lowers the price of goods, to customers in distant areas.

5. Base point pricing method: It is based on selecting certain cities as the base point, and then pricing based on the ex-factory price plus the freight from the base point city to the customer's city.

6. Freight-free pricing method: Sellers who are eager to do business with a certain customer or customer in a certain area sometimes waive all or part of the freight to facilitate the transaction.

1. Mantissa pricing: Also known as odd-number pricing or fractional pricing, companies intentionally set a price that has a certain difference from an integer when pricing products in response to consumers' desire for cheapness. This is a psychological pricing strategy with a strong stimulating effect.

2. Prestige pricing strategy: Based on consumers' desire for prestige, companies will set higher prices for prestigious products than similar products in the market. Contrary to mantissa pricing, it often sets prices as whole numbers. Prestige pricing deepens the status of product quality in consumers' minds and can also give customers a sense of honor in their purchases.

3. Attraction pricing: A company deliberately sets a low price for several products to attract customers, thus prompting customers to purchase other products as well as low-priced products.

Passive price reduction

Take the initiative to reduce prices

raise price

Pre-emptive strike

non-price defense