Penetration pricing this is giving only one set of price to


1. Penetration Pricing. This is giving only one set of price to fit all parts of the market, from the higher to the lower class. Its main objective is to increase sales volume and market share rather than to gain profit right away. [ By using this, you will establish reputation first then when quality is already proved, price increase in the future will no longer be questionable.

2. Cream-Skimming. This is jacking-up prices to earn right away. Remember, a shift from high to lower prices always elicits positive response while a shift from low to higher price is always negative. Unless the market pricing trend clearly indicates, then the latter can be false.

3. Price Management or SRP (Suggested Retail Price). This pricing strategy is one of the most beneficial to customers’ interest as this enables you to control the market trend while monitoring any offenders. Many products are already mandated by law to have a price limit. However, setting a ceiling price for a new product or service may need consultation from a certain body of government for more effective enforcement.

4. Price Lining. This pricing strategy is like putting a front act to gain attention for a new or re-branded product. It aims to make customers feel they are getting more from you. This is very good as you can promote two or more products at the same time, for free. Some common ways of price lining are: buy one take one, free sample of another product, and the most lucrative: discounts.

5. Odd Pricing. This pricing strategy uses psychology to lure buyers. This is most commonly adapted as a discount. Although this is a weak application of psychology, somehow, it works effectively. Probably customers don’t mind the pricing at all, but the fact that there is a discount.

6. Flexible Pricing. Or more commonly know as haggling.

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