Common Pricing Philosophies
There are as many variations in pricing philosophies, as there are business
styles and approaches to the market. Proclaiming pricing philosophies in the
advertising of the company can be an important part of establishing the image
of the business in the mind of the customer.
At times, many businesses combine these philosophies but let us briefly
examine each philosophy.
- Competitive prices everyday
The competitive prices everyday philosophy tells consumers that they will be
offered products at a competitive price, or similar to the price at other
businesses.
It doesn't mean that the products are any better than those obtained
elsewhere are.
A business taking this approach is telling customers that they are charging a
fair price.- Everyday low price
The everyday low price philosophy states that the consumer are offered
products at a price that is usually lower than the price offered by other
businesses having the same product.
Whether this is consistently the case may be another matter.
However, if the company does not live up to its stated philosophy, it will
not be long before its well known in the marketplace.
Once images are established, they can be hard to change.A few common pricing philosophies are:- Competitive prices everyday
2. Everyday low prices - Regular on-sale strategy
- Discount/clearance prices everyday