Last Updated 28 Jan 2021

Pricing approach

Category Microeconomics
Essay type Research
Words 272 (1 page)
Views 136

The pricing of products is divided into three, pricing below the industry price, cloning the industry prices and having a new prices from scratch. Pricing below the industry prices meant that one will be charged fees which are similar to the industry players but slightly below.

Since this is a new company, with a new concept industry to offer to its consumers the introductory price, the price will be evaluated after considering the demand; if the demand is high the price on the menu, will slightly go up but not above the competition so as to improve the profit margin at the maturity stage in the services life cycle.

The company also will offer periodic price discounts in special occasions e. g. valentines, anniversary but normal periods it reverts to normal prices. There will be introduction of some services where all the products in the prices are reduced to some reasonable prices to cover fixed costs and this called cloning the industry prices. This can be done once at specific periods, to attract more people to frequent and subscribe to the company services.

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The company also use diversion any pricing where the it will offer a particular service that represents the some interest group at a low price not including a regular services. As the consumer is attracted to the low price; he may be tempted to subscribe or an airtime. Thus he/she may end up using more than just the basic airtime service. To virgin pricing is very vital to all types of products and services and in order to be successful, there is the need to incorporate the pricing strategy that gives the best.

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