Pricing strategy refers to method companies use to price their products or services. Almost all companies, large or small, base the price of their products and services on production, labor and advertising expenses and then add on a certain percentage so they can make a profit. There are several different pricing strategies, such as penetration pricing, price skimming, discount pricing, product life cycle pricing and even competitive pricing.
A company that uses penetration pricing typically sets a low price for its product or service in hopes of building market share, which is the percentage of sales a company has in the market versus total sales. The primary objective of penetration pricing is to garner lots of customers with low prices and then use various marketing strategies to retain them.
Another type of pricing strategy is price skimming, in which a company sets its prices high to quickly recover expenditures for product production and advertising. The key objective of a price skimming strategy is to achieve a profit quickly. Companies often use price skimming when they lack financial resources to produce products in volume.
All products have a life span, called product life cycle. A product gradually progresses through different stages in the cycle: introduction, growth, maturity and decline stages. During the growth stage, when sales are booming, a company usually will keep prices higher.
Tell customers and internal stakeholders everything there is to know about your packages and pricing. Make the best impression during investor meetings, define your product’s pricing strategy and its differentiation. For first movers looking at price skimming, this template helps you articulate a strategy that charges a high initial price and gradually lower price to attract more cost-sensitive customers. This template is ideal for startups, who have just established their business model and are looking to get the word out about their pricing schemes.
Business leaders can use this template when preparing their company development strategy. For example, you can prepare different pricing options for your products. Salespeople can use this template to prepare pricing methods for different categories of buyers. For example, you can prepare prices for wholesalers and retailers, loyal customers and first-time customers.
Also, this template will be useful for startup managers when preparing their pricing strategies. Also, this template can be used by financiers when preparing plans for cash flows to the company. University professors can use this template to prepare their courses on Pricing Strategy or Market Conquest Strategy.
Available in four designs, this PowerPoint template has eye-catching, colorful visuals to help present your pricing strategy in a simple and concise manner to all stakeholders. You can present different tiers of pricing — from premium to economy — and distinguish competition, brand awareness and consumer archetypes. Each design is unique and presents never-before-seen formats to displaying qualitative and quantitative information.