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Understanding Product Pricing Models: Choosing the Right Pricing for Your Product

  • Product pricing is a critical decision for any business.
  • Cost-plus pricing is the simplest pricing strategy.
  • Value-based pricing relies on the product's perceived value from the customer's perspective.
  • Penetration pricing aims to capture market share by offering low initial prices.
  • Skimming pricing sets high initial prices and gradually lowers it over time.
  • Freemium pricing offers basic features for free and additional features for a fee.
  • Subscription pricing charges customers a recurring fee in exchange for access to a product or service.
  • Pay-per-use pricing charges customers based on how much they use the product.
  • Bundle pricing involves offering multiple products or services at a discounted price.
  • Dynamic Pricing adjusts the price of a product in real-time based on market demand and competition.
  • Geographic pricing varies the price of a product based on where the buyer is located.

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