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What is Customary Pricing?

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Customary pricing is the strategy of basing prices on historical price points that customers expect. Customers may strongly resist a price above what they expect and may be attracted to prices below expectations.

Example

Customers in a particular country are accustomed to paying $9.99 for a month of unlimited streaming music. This becomes a common expectation. In this environment, a service that launches at $11.99 may see few subscribers even if they have premium features. A service that launches for $7.99 may attract business with little effort.
Overview: Customary Pricing
Type
Price Strategy
Price Economics
Definition
Basing prices on price levels that customers have come to expect.
Related Concepts
Price Points
Sticky Prices
Pricing Strategy

Pricing

This is the complete list of articles we have written about pricing.
Algorithmic Pricing
Bargaining Power
Benchmark Price
Commoditization
Price Fixing
Cost-plus Pricing
Equilibrium
Price Gouging
Customary Pricing
Decoy Effect
Everyday Low Price
Marginal Utility
Willingness To Pay
Dynamic Pricing
High-Low Pricing
Market Value
Flat Pricing
Loss Leader
Predatory Pricing
Price Discrimination
Snob Effect
Market Price
Price Competition
Price Leadership
Premium Pricing
Price Economics
Price War
Revenue Management
Veblen Goods
Price Floor
Price Promotion
Price Sensitivity
Price Skimming
Price Umbrella
Pricing Power
Pricing Strategy
Sticky Prices
Value For Money
More ...
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Pricing Strategy

An overview of common pricing strategies.

Price Discrimination

A list of price discrimination strategies.

Price War

An overview of price wars.

Price Economics

A list of price economics principles and theories.

Premium Pricing

A definition of premium pricing with examples.

Penetration Pricing

A definition of penetration pricing with examples.

Variable Pricing

The definition of variable pricing with examples.

Channel Pricing

A definition of channel pricing with examples.

Supply And Demand

An overview of supply and demand with examples.

Value Pricing

The definition of value pricing with examples.

Willingness To Pay

A list of factors that influence willingness to pay.

Sticky Prices

Prices that stick to an established range and resist changing economic forces such as inflation.

Commoditization

A definition of commoditization with examples.

Too Cheap To Meter

A definition of too cheap to meter with examples.

Relative Price

The definition of relative price with examples.

Dumping

An overview of dumping with an example.

Value vs Price

The difference between value and price with examples.

Market Value

The definition of market value with examples.

Competitive Market

A complete overview of competitive markets with examples.

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