10 Successful Pricing Strategies to Attract More Customers

Pricing refers to setting a price for a product or service at which it will be sold in the market and made available for the customers to buy. There can be different pricing objectives behind setting a product price, and by setting the prices, several kinds of pricing strategies are used. They are the marketing strategies that are used to determine the prices of products and services. Its one of the most important elements of a company's marketing mix and thus requires critical evaluation and formulation of effective strategies.

Here are ten Successful Pricing Strategies to Attract More Customers

1. Skimming Pricing – The company initially sets a high price for its product and gradually decreases the price. This is because it wants to attract a considerable market share by attracting customers through a low price. 

2. Penetration Pricing – The company introduces the product at a low price because the objective is to gain market share and the profit objective comes afterward. In addition, the company wants to create huge demand for its product in the market and increase its customer base and customer loyalty. 

3. Tactical Pricing  - It means the prices of the company's products can be changed on a day-to-day basis. Based on the demand in the market and the pricing strategy used by the competitors, the brand can change its everyday product pricing using the tactical pricing strategy.

4. Competitive Pricing – The company follows the pricing set by its competitors so that the customers have similar choices to choose from, which will sustain competition. While using this strategy, the seller can get even the same price as its competitor to compete with him. The best example of companies following this pricing policy is Walmart.

5. Psychological Pricing – The seller takes advantage of the psychological thinking process which every customer goes through. They price the products just a number below the whole number, like pricing at $4.9 instead of $5 to entice customers.

6. Value pricing – The company prices its products according to its target customer's perception about its quality and the value they will receive from the product. For example, a wedding dress is much costlier than a prom dress because it has more value to customers.

7. Price Discrimination – The companies attempt to charge different prices from the different customers while selling the same product to all customer types.

8. Product-bundle Pricing – The company combines some of its products together and prices them collectively. The cost of the product bundle is lesser than if the products are bought individually by the customers.

9. Promotional Pricing – The company offers discounts and offers on the product's base price. This is done to attract more customers to the product. 

10. Value-added pricing – The company adds additional value to its product in a value-added pricing strategy. It charges an additional price for that value, and the value convinces the customers they get from the product.

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