PRICING STRATEGY

1. 9-Contingency Pricing

1.1. Here, no payment is made to the service provider. The payment is made after the service is performed and is contingent upon its being satisfactory.

2. 10-Odd Pricing

2.1. : Here, prices end in odd numbers, e.g., OMR 1.99, OMR. 2.99, OMR 5.99 , etc. It is a form of psychological pricing, and gives a feeling that the amount is below a particular ceiling.

3. 11-Leader Pricing

3.1. Some popular items are deeply discounted to build up traffic, e.g., a Dettol Antiseptic bottle whose price is OMR 3 may be sold for OMR 2.2. It fetches the customers to the store, who may then buy other goods on regular prices

4. 12-Multi-Unit Pricing

4.1. A package of 3 soap cakes is priced at OMR 2.5, though each soap cake individuality costs OMR 1. Thus, the multi-unit costs cheaper. It increases the total purchase of the merchandise. It also quickens the sale of slow-moving merchandise

5. 13-Price Lining

5.1. Here, the merchandise is sold at a limited range of price points, where each point represents a quality level.

6. 14-Price Zone

6.1. It is range of a prices for a particular merchandise. A price point represents a specific price within this range.

7. 15-Market Skimming

7.1. Here, merchandise is initially priced higher, and the prices are lowered later. It is a discriminatory pricing, the basis of discrimination being time

8. 16-Market Penetration

8.1. It is the antithesis of market skimming. Here, the merchandise is priced lower initially to capture the market.

9. 17-Discount Pricing

9.1. Here, merchandise is offered at a discount-mostly highest possible discount to give the lowest possible prices

10. 18-Predatory Pricing

10.1. Here, goods are sold even below their cost price, destroying the value

11. 1-Demand-oriented Pricing

11.1. an assessment is made' about the consumer demand at various price points. A consumer perceives that he derives functional and psychological benefits from the merchandise. This is called the value derived.

11.2. Demand-oriented pricing works when the retailer analyzes the target market and the value proposition they seek. Prestige pricing assumes that premium products are patronized by the status-conscious elite target audience. Prestige pricing also leads to the selection of a particular retailer.

12. 2-Cost-oriented Pricing

12.1. It is a most commonly used pricing strategy. Mark up prices factors in the merchandise cost operating expenses and expected profits. The selling price minus the merchandise cost is the mark up. The percentage of mark up depends upon the trade norm, supplier's suggested price, stock turnover, competition, overheads, alteration costs and the selling effort

13. 3-Competition-oriented Pricing

13.1. Instead of demand and cost being the benchmarks for price setting, a retailer benchmarks its prices against a competitor. A retailer keeps competitive parity while pricing. Competition oriented pricing would be below the market, at the market or above the market

14. 4-Customary Pricing

14.1. Here, prices are kept constant for an extended period, e.g., newspaper prices , phone tarif, restaurant menus.

15. 5-Everyday Low Pricing (EDLP)

15.1. Here, in the entire selling season, low prices are maintained.

16. 6-Yield Management Pricing

16.1. It is a computerized demand-oriented pricing. A service provider here tries a combination of prices to optimize his yield, e.g., an airline sells discounted tickets, full-fare tickets and first-class tickets in certain proportions. The discount decisions are based on time and season.

17. 7-One-Price Policy

17.1. The same price' is charged to all the customers. Here, there is no bargaining

18. 8-Flexible Pricing

18.1. Allows bargaining over selling prices. Hard bargain brings the prices down. Such pricing may be followed by - jewellery showrooms, electronic goods dealers, auctioneers, auto dealers, etc.