Pricing Flashcards
1
Q
What is cost-plus pricing?
A
Calculate your costs and add a mark-up.
2
Q
What is competitive pricing?
A
Set a price based on what the competition charges.
3
Q
What is price skimming?
A
Set a high price and lower it as the market evolves.
4
Q
What is penetration pricing?
A
Set a low price to enter a competitive market and raise it later.
5
Q
What is value-based pricing?
A
Base your product or service’s price on what the customer believes it’s worth.
