Pricing strategy

Definition

A pricing strategy is a company's plan for setting the prices of its products or services, aiming to find the optimal balance between profits and customer satisfaction. It involves considering factors such as production costs, market conditions, competition, and perceived value by customers.

Related terms

Cost: Based Pricing - Setting a product's price based on the cost of production plus a markup for profit.

Market: Oriented Pricing - Determining product prices based on how competitors price similar products and what the market will bear.

Value: Based Pricing - Setting prices primarily on the perceived value to the customer rather than on production costs or market standards