Companies use different methods to price their products and services. This is referred to as pricing strategy. Large, medium and small companies set the price of their products and services based on different expenses such as in labor, factory, advertising and so on. Furthermore, companies will add a certain percentage above the cost, which is the profit and subsequently arrive at the final price. There are several pricing mechanisms such as penetration pricing, price skimming, discount pricing, product life cycle pricing and competitive pricing. In price skimming a company aims to achieve a quick profit. Hence the price is set high to quickly recover expenditures for product production, advertising, labor cost in product develop, and services. The price penetration process is used by companies to achieve many customers and then use various marketing strategies to retain them. Businesses generally want to serve these customers in order to build brand loyalty among them. As per this pricing strategy business set low price for its product or service so as to penetrate a large section of the market. This is in turn contributes to the percentage of sales a company has in the market versus total sales. All products have a life span, called product life cycle. A product naturally moves through different stages in its life cycle: introduction, growth, maturity and decline stages. A growth stage is identified by high sales. This is when the company will keep prices higher and this forms the of product life cycle pricing. Companies use temporary discount pricing to increase sales. Temporary discount pricing strategies include offering coupons, promocodes, seasonal price reductions and bulk purchase. In the competitor based pricing strategy companies lower its price to meet the prices of competitors. The Pricing Plans Template is completely editable and is available in both as PowerPoint and Keynote template. The template is available in light and dark shade background. The template offers basic, professional and premium varieties of pricing which come in attractive colors.
