#MARKET PENETRATION PRICING STRATEGY SOFTWARE#

You could price your products the same, or slightly higher or lower than your competitors. When using this pricing strategy, you would research the prices offered by your closest competitors and price your offers similarly. Competitive Pricing StrategyĬompetitive pricing - also known as competition-based pricing - follows the going market rate for a product or service.

#MARKET PENETRATION PRICING STRATEGY SOFTWARE#

It usually doesn’t work very well for more complex products or services, such as software or consulting services. The cost-plus pricing strategy is mostly used by retailers selling many physical products. This is why the cost-plus pricing model is often referred to as ‘markup pricing.’ Once you’ve determined the COGS, you would apply a fixed percentage to make a profit. This includes product sourcing, packaging, shipping, storage, marketing, overheads, and any other cost required to produce and sell the product or service. Here’s how it works: First, you would determine the total cost of producing and selling your product or service - also known as the cost of goods sold (COGS).

Cost-Plus Pricing StrategyĪ cost-plus pricing strategy is one of the most straightforward ways to price your offers. Let’s take a closer look at each one so you can understand the differences. The type of pricing strategy that you use will depend on a few factors. Here are 15 types of pricing strategies that we’re going to explore in this article: There are many different types of pricing strategies - each with its advantages and disadvantages. Pricing strategies are designed to maximize both sales and profits. A pricing strategy is a method used to identify the optimum price for a product or service.

Market penetration pricing strategy