17 Pricing Strategies to Establish Your Market Positioning
Posted: Sun Jan 19, 2025 5:20 am
When thinking about how to differentiate yourself from your competitors, pricing typically isn’t the first thing to come to mind. More often, you think about how your solution is different, how your brand sets you apart or even how your business is more convenient or easy to find.
But pricing is one of the 4 Ps too, and how you price your list of armenia consumer email product or service doesn’t just impact your profitability — it impacts how you compare to competing solutions and how customers perceive you.
Pricing Strategy vs. Pricing Model
Your pricing model is dictated by your product. Your pricing strategy is based on the market your product is in. While there are some pricing models and strategies that won’t align, the two don’t have to be related at all.
Three companies could offer similar products but use completely different pricing models and strategies. For example, one could use a price skimming strategy with a flat rate model. Another could use a tiered pricing model with a penetration pricing strategy, and the third could use a freemium strategy with a pay-as-you-go model.
Your pricing model should be built around the core offering of your product or service, and your pricing strategy is based on how your product compares to your competitors and the demand for it.
But pricing is one of the 4 Ps too, and how you price your list of armenia consumer email product or service doesn’t just impact your profitability — it impacts how you compare to competing solutions and how customers perceive you.
Pricing Strategy vs. Pricing Model
Your pricing model is dictated by your product. Your pricing strategy is based on the market your product is in. While there are some pricing models and strategies that won’t align, the two don’t have to be related at all.
Three companies could offer similar products but use completely different pricing models and strategies. For example, one could use a price skimming strategy with a flat rate model. Another could use a tiered pricing model with a penetration pricing strategy, and the third could use a freemium strategy with a pay-as-you-go model.
Your pricing model should be built around the core offering of your product or service, and your pricing strategy is based on how your product compares to your competitors and the demand for it.