product line pricing strategies are some of the most popular, particularly with companies looking to cultivate a broad appeal with their product. this would be the low-price option (depending on which product line pricing strategy the company’s using, it may even offer such a basic feature for free, but we’ll get to that later). a product line with low-end, mid-range, and high-end pricing means you’re likely to pull in an array of customers with various needs who’ll be catered to by different cost categories.
product line pricing is the bread and butter of the automobile industry. now we come to the motherlode: how you actually go about choosing one of the various product line pricing strategies available. this is the pricing matrix of hubstaff, a saas company offering a product that keeps track of on-the-clock time for employees. you can only make this strategy work if your product boasts a solid variety of features and the ability to appeal to more than one buyer persona.
product line pricing is oriented on separating goods into cost categories in order to create various quality and feature levels in the minds of consumers. the goal of product line pricing is to maximize profits. the goal is to draw enough interest in the primary product, to sell the upgraded product at a greater price based on the interest in the basic primary product. the next ipad is one with 4g and the same limited storage, but it costs somewhere around $150 more. price bundling is a part of a product line pricing strategy. this strategy is encouraging consumers to buy all the products within the bundle, where they may have only previously bought the single high priced item.
the purchase of a new camera is a good example. however, one of the disadvantages of product line pricing is it’s narrow focus on cost alone. a weak economy, a change in purchasing patterns, or additional fluctuations in the market, may cause consumers to lean toward the lower-priced products, thus leaving companies stuck with higher-priced inventory. to ensure that sales of their toyota products are not canabilized and vice versa during down-turns, they have a completely different market offering with their higher end brand, lexus. a company’s pricing policy sends a message to the market- it gives customers an important sense of a company’s philosophy. if you think you can provide clear differentiation in the features and benefits of your marketable goods and services, product line pricing could be the way to go.
product line pricing involves the separation of goods and services into cost categories in order to create various perceived interest in the basic primary product. a good example of this would be apple’s ipads. price bundling is a part of a product line pricing strategy. a firm would typically select a high product line,product mix,product line pricing, product line example: the same sightseeing place, optional product pricing example, optional product pricing example, captive product pricing example, by-product pricing example, product line pricing definition. selling a product at or below cost to lure customers in and drive other sales is an example of product-line pricing. a restaurant, for example, might offer a low-priced entr\xe9e with the purchase of a drink and dessert that have higher profit margins.
examples razor blades and razors: gilette and schick are a perfect example of captive pricing. cell phones so in that example, you have two product lines: your free product (the basic product) and your a common example of product line pricing would be a company that makes smartphones. taking apple that makes,
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