Business AQA - Pricing Strategies

Cost plus pricing

Cost plus pricing

Setting a price by adding a fixed amount or percentage to the cost

Penetration pricing

Setting a relatively low initial entry price to attract customers

Loss Leader

A product priced below cost-price in order to attract consumers into a shop or online store

Price skimming

Setting a high price at product launch as demand is high and decrease price as the market has been ‘skimmed‘.

Competitive pricing

Set a price in line with the prices charged by direct competitors