New Product Pricing
| Strategy | Approach | When to Use |
|---|---|---|
| Price Skimming | Start high, reduce over time | Innovative products, inelastic demand |
| Penetration | Start low to gain share | Price-sensitive market, economies of scale |
Product Mix Pricing
- Product Line: Price steps (Good, Better, Best)
- Optional Product: Base + accessories
- Captive Product: Low base, expensive consumables
- Bundle Pricing: Combined products at discount
Psychological Pricing
| Tactic | Example |
|---|---|
| Odd-Even | ₹999 vs ₹1000 |
| Prestige | High price = quality |
| Anchoring | "Was ₹2000, Now ₹1500" |
Conclusion
Key Takeaways
- Skimming: High initial price for innovation
- Penetration: Low price for market share
- Psychological: Leverage cognitive biases
- Price is the only P that generates revenue