40 Examples of Pricing Strategies

John Spacey, updated on March 11, 2023

Pricing strategy is the process of structuring and setting prices to achieve goals such as revenue targets, market penetration, product positioning, brand status, inventory management and to win competitive battles. The following are common pricing strategies.

Algorithmic Pricing Complex pricing rules that are automated.	Anchor Pricing Using a high priced product to make other products seem cheap by comparison.
Auctions Setting prices with a competitive bidding process.	Bundling Pricing Discounts for multiple purchases or subscriptions.
Channel Pricing Different prices for different channels such as ecommerce vs retail.	Clearance Pricing Pricing designed to clear excess inventory.
Cost-plus Pricing Setting prices based on cost plus markup.	Decoy Prices Bad prices in a price list that make the other prices in the list look better.
Dynamic Pricing Changing pricing in response to data such as inventory and demand.	Early Bird Pricing Low prices for the brave who try a new service with little market share.
Economy Pricing Trying to set prices low to capture high sales volumes.	Everyday Low Price Stable value pricing designed to build a loyal customer base.
Fixed Pricing Charging a fixed price that provides the customer with stability and low risk.	Flat-rate Pricing Offering a flat rate for a service that is often usage based.
Freemium Pricing Offering a free version as a means to attract market share.	High-low Pricing High prices at product launch that decline with time.
Loss Leader A good price for an item designed to attract customers.	Loyalty Pricing Giving existing customers discounts to reward loyalty.
Market Price Setting prices according to the prevailing market price.	Negotiated Pricing Negotiating prices with each customer.
New Customer Pricing Discounts that are only available to new customers. The opposite of loyalty pricing.	Penetration Pricing A low price for a new product or brand designed to build market share.
Personalized Pricing Setting prices at the customer level. This can be unethical.	Predatory Pricing A large competitor that tries to use low prices to put the competition out of business.
Premium Pricing Sustaining high prices for a luxurious product or service.	Price Discrimination Finding ways to charge different prices based on price sensitivity.
Price Matching A policy of matching the comparable prices of competitors.	Price Points Levels of price where demand suddenly drops if you charge more.
Price Skimming Charging more at launch to leverage the willingness to pay of those who want to be first to try an anticipated product.	Price War Responding to the pricing of your competitors with lower prices.
Promotional Pricing Sales and other discounts designed to attract price sensitive customers.	Psychological Pricing Considering customer perceptions of prices in your price strategy.
Sticky Prices Charging a traditional price that is difficult to change as consumers have come to expect it.	Subscription Model Pricing based on recurring payments.
Surge Pricing Charging more in periods of high demand.	Trial Pricing Low prices designed to get customers to try a product or service.
Usage Pricing Billing based on usage of resources.	Value Pricing Setting prices according to the value of a product or service in the minds of customers.
Variable Pricing Using data to continually adjust pricing.	Volume Pricing Volume discounts and other prices based on amount purchased.