A low-price strategy is based on the idea of offering customers attractively priced solutions at prices in the lower price segment, thereby occupying the discounted segment. The purpose is to facilitate the quantity strategy through this price strategy. High sales make up for very low coverage. A prerequisite for this is sufficient capacity and suitable market access to enable high-volume production. Middle price strategy: The middle position is often strategically referred to as being stuck in the middle, and according to Porter, this strategy is also unstable in the long run. However, in many fragmented and chaotic markets, a mid-range pricing strategy is a good bet for generating decent returns.
If production conditions do not allow for an aggressive low-price strategy, this strategy is a classic mid-size option, with no globalization advantage offered by its own market and therefore no potential for price reductions, nor any real opportunity for differentiation. High Price Strategy: A high price strategy combined with a differentiation strategy offers a great way to make a premium location financially whatsapp mobile number list successful. Using this strategy option, it is possible to choose a price corridor above the market average and price for differentiation. Especially in brand management, this is an important option to cover the cost of brand development and brand maintenance.
A premium price strategy works if the customer perceives that a premium product meets his needs better than a standard product and is therefore more willing to pay. These normal pricing strategies are based on the idea of normal market price sensitivity. We assume that customers have different willingness to pay, but the market basically works in such a way that larger quantities can be automatically sold at lower prices. pricing strategy is a special case of pricing strategy that comes into play whenever suppliers manage to subvert normal market processes. In other words, if the price falls, the mechanism of increasing sales is reversed, and the classic volume-price relationship dissolves. A luxury pricing strategy requires product and brand differentiation, which avoids direct comparisons with other products.