8 Effective pricing strategies

There are several effective pricing strategies, including value-based pricing, cost-plus pricing, penetration pricing, premium pricing, economy pricing, psychological pricing, product line pricing, and bundle pricing. Companies should choose the pricing strategy that best fits their goals, market conditions, and target customers. For example, value-based pricing sets prices based on the perceived value of the product or service to the customer, while cost-plus pricing sets prices based on the cost of production plus a markup.