Entrepreneurship Unit Pricing and Pricing Strategies

Penetration Pricing

Setting a low initial price to attract customers and gain market share quickly

Price Skimming

Setting a high initial price, then lowering it over time as demand decreases

Prestige Pricing

Setting a high price to signal quality or luxury

Competitive Pricing

Setting prices based on competitors' prices

Unit Pricing Formla

Unit Price=Total Price / Number of Units

Why is unit pricing helpful for customers?

So customers can compare values easily, compare deals, makes pricing transparent, and encourages smart consumer decisions

When do you use penetration pricing?

When entering a competitive market or launching a new product

When do you use price skimming?

When launching innovative of in-demand products

When do you use prestige pricing?

When selling to a status-conscious or high-end market

When do you use competitive pricing?

When trying to stay aligned or competitve in a crowded market