Marketing Pricing Strategy Essay
Today’s highly competitive business world forces companies to create different tactics and relatively rely on multiple pricing strategies to conduct business.
As is known, pricing is one of the most important steps for business plan which needs good research, calculations and formulations. There are different pricing strategies to put into effect due to the market and product conditions, such as premium pricing, penetration pricing, economy pricing, price skimming(Voice Marketing, 2012). These four pricing strategies are main pricing policies. They form the bases for the exercise. However there are other important approaches to pricing. These pricing strategies are: Psychological pricing, product line …show more content…
Product Line Pricing: A product pricing strategy for a number of products (more than one) within one product line. (Voice Marketing, 2012) This pricing type is used by company when it develops a line of products in the same family, rather than just one product. Different products within a product line are priced differently. A company has to convince or show to consumers that a more expensive product in its product line has more value than a product that is cheaper.
Optima has two service products in its laundry line. Regular wash with regular price and Eco-wash services with extra price. Company also offers two types of time related laundry services. Regular scheduled service and rush- wash services. Of course rush-wash requires higher price.
Business shirts cleaning service has two types of packaging options. On the hanger and “in the box” (exclusive service). Exclusive service costs higher price. Owing to the Product Line Pricing tactics, Optima creates good advantage on pricing for eco-wash, rush delivery and exclusive services.
Value Pricing: The strategy is: to sell the high value product or service at a low, value price. This price is not to be below cost but at what the customer would perceive to be a low price (Bovay, K.2008). According to the description of this pricing tactic, Optima does not use this tactic, because it does not match with