The strategic pricing pyramid

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The strategic pricing pyramid is a framework for pricing management that includes three levels: value-based pricing, cost-plus pricing, and penetration pricing. 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. Penetration pricing sets prices low to gain market share. Companies should consider the strategic pricing pyramid when making pricing decisions, taking into account the goals and objectives of the company, market conditions, and competition.


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