4. Pricing Philosophies& Approaches
Introduction
The pricing philosophy and approach of a company is closely linked to the
creative platform of a company. As much as the creative platform of a company
is the basic expression of how the company sees itself and
wants to express and position itself in the market, the pricing
philosophy is a key component of that expression.
There are numerous pricing philosophies and approaches that a
company can choose. Many pricing philosophies are closely
linked to the merchandising of a store and the style of doing
business.
The term merchandising refers to the type of products that are offered and
the way in which those products are displayed and advertised in the store.
In Pricing Philosophies and Approaches, we will discuss a number of
common pricing philosophies and link them to several common business
styles and merchandising approaches.Visual presentation and display techniques are another important consideration
and their relationship to the pricing philosophy and merchandising.
There are so many variations and combinations that this section will not
address them all.How to use this information
As you study this material, think about:
What is the business style of your business?
Do you have a pricing philosophy and, if so, what is it?
Why did you choose the business style and pricing philosophy for your
business?
Does your business style and pricing philosophy suit your market? If not
how will you, change it?