What are pricing strategies and why are they key in business?

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Pricing strategies are a set of approaches and tools for determining the optimal price of a product or service. Their importance lies in the fact that they directly translate into the profitability of the company. Price not only determines sales levels, but also influences the perception that consumers have of a brand. Apple, for example, systematically applies a premium strategy by maintaining high prices, which highlights the value and quality of its products. Lidl or Biedronka, on the other hand, often rely on a market penetration strategy, offering products at attractive prices to attract customers.

Types of pricing strategies: which one to choose for your business?

Market penetration strategy
Focuses on low initial prices to quickly jordan email list gain market share. Ideal for new companies entering a competitive market. With this strategy, companies can build a customer base quickly, although often at the expense of initial profits.

Premium Strategy
It focuses on the high price and unique value of the product, which attracts customers seeking quality and exclusivity. It is suitable for brands that offer luxury or innovative products.

Skimming strategy
It consists of setting a high initial price, which is gradually reduced as the product enters the following life stages. This strategy is especially popular in the technology industry.

Psychological strategy
It is based on the impact of prices on customer perception, for example £19.99 instead of £20. The psychological aspects of pricing can greatly increase the attractiveness of an offer.