we will explain the basic strategies for setting product prices within the product mix, both for individual products and whole ranges of products in the product mix. products that are part of a product mix are all interrelated. even worse, it may hurt the sales of other products in the product mix. since the various products in the product mix have related demand and costs, but face different degrees of competition, pricing is difficult.
with growing complexity in the product mix, pricing products correctly gains even more importance. optional product pricing is the pricing of optional or accessory products along with a main product. captive product pricing is an extremely powerful strategy in the set of product mix pricing strategies. the last product mix pricing strategy is product bundle pricing. for the company, product bundle pricing is a very effective product mix pricing strategy: it can promote the sales of products consumers might otherwise not buy or buy less.
a product mix pricing strategy is your roadmap to making multiple sales and leveraging sales in your product lines to increase profitability. as the university of minnesota explains, a product mix includes all of the products a company has to offer its customers. if you have ever succumbed to a “buy one get one free” sale, upgraded your cell phone plan, bundled all of your insurance with the same company or bought a value meal at a restaurant, you’ve been the happy target of a product mix pricing strategy.
before you can start developing a product mix pricing strategy, you will need a strategy for your product mix itself – that is, the products you plan to offer together. this would represent a second product line, adding to the width, with a high degree of consistency between your product lines. product line expansion is a common way to increase your mix, by increasing the number of product lines (length), or adding variations to your current products (depth). a published author and professional speaker, david weedmark has advised businesses on technology, media and marketing for more than 20 years.
5 product mix pricing strategies product line pricing optional product pricing captive product pricing by-product pricing product bundle five product mix pricing strategies with examples bundle pricing: multiple products are grouped together for a discount. captive pricing: this is when a base 1) product line pricing 2) optional feature pricing 3) captive product pricing 4) two part pricing 5) by product pricing 6) product, product mix pricing strategy advantages and disadvantages, product mix strategies, product mix strategies, product line pricing strategy example, by-product pricing.
5 types of product mix pricing strategies in marketing are product line, optional product, captive product, by-product & product bundle pricing strategy. product line pricing. since firms usually develop product lines rather than single products, product line pricing plays a decisive role in product mix pricing common strategies include: geographical: price your products based on where you sell them. competitive: set your prices in relation to what competitors are, optional product pricing example, price adjustment strategies, pricing mix, importance of product mix pricing. what is product mix pricing strategy? what are the product mix strategies? what is an example of a product mix? what are the factors affecting pricing explain the product mix pricing strategies? five product mix pricing situationsproduct line pricing u2013 the products in the product line.optional product pricing u2013 optional or accessory products.captive product pricing – complementary products.by-product pricing u2013 by-products.product bundle pricing u2013 several products.
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