| A | B |
|---|
| Demand-Based Pricing | Determined by how much customers are willing to pay for a product or service |
| Cost-Based Pricing | Determined by using the wholesale cost of an item as the basic for the price charged. |
| Competition-Based Pricing | Pricing determined by considering what competitors are charging for a product or service |
| Time-Based Pricing | Pricing determined by how much time was involved in completing a service. Example: Plumber, Electrician, Mechanic |
| Bundling | Services can be put together to form one price. Think about cell services for families. |
| Price Skimming | Used when a product is new and unique. usually a higher price |
| Penetration Pricing | Starts out as a low price but eventually increases as demand increases. |
| Psychological Pricing | A belief that certain prices have an impact on hoe customers perceive a service or product. |
| Odd-Even Pricing | Customers believe that $29.99 sounds like a bargain compared to $30.00 |
| Price Lining | Offering different levels of pricing for a specific category of a product based on features and quality |
| Promotional Pricing | Offering a lower price for a limited time period to increase sales. |
| Multiple- Unit Pricing | Pricing items in multiples such as 10 for $10.00 |
| Cash Discounts | Offered to encourage early payment. Example: 2/10, net 30 |
| Quantity Discounts | Based on how much you are willing to purchase |
| Trade Discounts | Reductions on the list price granted by a manufacturer or wholesaler to buyer in the same trade. |
| Seasonal Discounts | Used for selling seasonal merchandise that is out-of-season. ie: bar barque grills sold during the winter. |
