3.8: Pricing Tactics II
Some more pricing tactics include the following.
- Rebate Pricing involves offering customers a partial refund after they have purchased a product and completed an additional step, like mailing in a coupon or form. Rebates incentivize sales by lowering the net price.
- Lease or Rentals make products or services more accessible to consumers. Instead of selling a product outright, companies can lease or rent it for a periodic fee—for example, car rentals.
- Price bundling is where businesses sell multiple products together at a lower price than if bought separately to boost sales volume and help sell slower-moving items. Examples include software packages or fast-food combo meals.
- Leader Pricing involves selling a product at a lower price - even at a loss - to attract customers who will buy other, more profitable items. Like in grocery stores, staple items are priced low to attract shoppers.
- Price Lining is where companies set a limited number of price points for a product line, each representing a different level of features or quality, helping the company segment its markets such as budget, mid-range, and luxury options.
Each tactic serves a specific purpose depending on the company's goals, the nature of the product, and customer behavior.
