The document discusses various pricing techniques used by companies including price anchoring, price hiking, remodel pricing, complementary pricing, pleasure pricing, offer supportive pricing, sweet pricing, level pricing, and traditional pricing. Price anchoring involves placing premium priced items near standard items to influence consumer decisions. Price hikes should generally be less than 10% to reduce consumer pain. Remodel pricing offers flexible buying options like annual, half-yearly, and quarterly subscriptions. Complementary pricing bundles multiple products into a single price. Pleasure pricing focuses on conservative spenders and the value added by products. Offer supportive pricing provides reasons for promotions to build loyalty and trust.

1. Pricing Techniques

2. HAPPY HOLI

3. Pricing Techniques ????
What it means ??????
how it can be used?????
Please let us know
Objectives

4. Pricing Techniques

5. Price Anchoring
 Means placing premium price
items/services near standard
items/services.
 Consumers mostly relies on the
first piece of information for
decision making purpose.
 It will influence the decision
making process of the
consumers.
 The premium priced items
information created a basis for
the decision making of the
consumer.

6. Example of Price Anchoring
Placing a premium watch of Rs 10,000 on
beside of the standard watch of Rs 2,000 in a
watch showroom.

7. Price Hiking
 Means increasing the prices of
the products/services without
any negative impact on the
sales performance.
 It will increase the revenue of
the organization even with
the same sales performance.
 To reduce the pain of the
consumer due to the price
hiking, the increase in price
should not be more approx.
10 %(consider standard as
per Weber’s Law) of the old
price.

8. Example of Price Hiking
Before
Product X – Rs 100 increased to Rs 120.
Product Y – Rs 200 same as Rs 200.
After
Product X – Rs 100 increased to Rs 105.
Product Y – Rs 200 increased to Rs 215.

9. Remodel Pricing
 Means remodel the prices in different ways without any
impact on the original prices.
 It makes the buying options more flexible to the
consumers.
 Various options will be available to the consumers and it
will improve the revenue of the organization.
 It will create infusion that some benefit provided to the
consumer for loyalty which will be projected in the pricing
methodology.

10. Example of Remodel Pricing
Before Remodel Pricing
Annual Subscription : Rs 5000
After Remodel Pricing
Annual Subscription : Rs 5000
Half yearly Subscription : Rs 2750
Quarterly subscription : Rs 1500

11. Complementary Pricing
 Means charging price to the customer as a single product for
a bundle of products.
 Helps organizations to make outbound sales of multiple
products without appealing justification to each customers
in a customer group.
 Acts as a effective marketing tool and creates positive sign
on the organization from the customer point of view.

12. Example of Complementary Pricing
Before -
An insurance offering individual health insurance policy for
premium of Rs 1000 p.a.
After –
Individual health insurance policy – Rs 1000 p.a.
Family health insurance policy – Rs 2500 p.a.

13. Pleasure Pricing
 Means price will be charged to the customer for the
utility/pleasure enjoyed by the customer with the product.
 Focused on the conservative spenders.
 Promotional activities needs to make presentations on the
value addition of the products to the customers.
 Needs to identify the conservative spenders and appropriate
sales messages to be made through social media.

14. Example of Pleasure Pricing
Making of Sales message or promotion activities
Spend Rs , for a payroll software and save your
valuable time of business .
Spend Rs 8 per month and make all local or STD calls
without any charges .

15. Offer Supportive Pricing
 Means every offer provided to the customers needs to be
supported by a reason which will be projected as benefit to
the customer.
 Normal prices should not be reduced without any reason as
it will effect the loyalty and trust of the customers on the
pricing strategy.
 No offers should prevail through the financial year, it should
have planned time period.
 As the word Free will have tremendous impact on
customers, hence needs to be properly handled.

16. Example of Offer Supportive Pricing
Before -
30% Off on Parker Jeans.
Every purchase of 2 peter England shirts – 1 shirt FREE.
After -
30% off on parker jeans as company loyalty discount.
Every purchase of 2 peter England shirts – 1 shirt FREE –
Christmas Limited offer.

17. Sweet Pricing
 Means providing a good and sensitive words or sentences
along with the price tags/catalogs.
 Customers will be influenced with the sentences made in the
promotional activities regarding the prices.
 Project the same product as different products,
 Offering the same product in different ways to multiple
customer bases will be turned out as sales even though the
content of the product does not differ.

18. Example of Sweet Pricing
 Promotional Price tag line
Bring Happiness to your Home for this Christmas with
Domino’s Pizza - Rs 5 . Only .
 Add only at the end of the price
Samsung J Series for Rs , only
 Add small at the starting of the price
Annual membership at a small of Rs 50 contribution"

19. Level Pricing
 Means providing different levels of pricing options to the
customers.
 Usually options will be Cheaper, Regular & Premium
Options.
 Different customers will have preferences for different
options for the same products.
 Most of the customers will prefer for Regular price if there
are three options available for the same product.

20. Example of Level Pricing
 Cost of the Wine
Cheaper option – Rs. 90
Regular Option – Rs. 120
Luxury Option – Rs. 150

21. Traditional Pricing
 Means pricing the products ending with the odd numbers
especially number Nine.
 As a tradition, Most of the business persons will have
conventional belief that products having prices which are
ending with number nine will be more attracted by the
customers.
 In some cases, it increases the sales of the concerned
product even if the prices are increased (Price increased
from Rs 45 to Rs 49 only)

22. Example of Traditional Pricing
In India, Bata will follow the traditional pricing for its
products (Shoes) to attract its customers and it helps Bata to
differ its products from competitor products.
Shoes – Rs 1399 only.

23. Simple Pricing
 Means projecting the product prices as simple as possible
without any syllables.
 It helps to satisfy the customer that the product value was
justified for the product benefit.
 If the prices contains less syllables will be more
comfortable for the customer and it will attract the
customers to buy the product.

24. Example of Simple Pricing
A product of Rs 1,500.00 can be represented as Rs 1500
only in a simple way on the price tag of the product.
One thousand and five hundred rupees only can be simply
represented as fifteen hundred only.

25. Memory map
Price anchoring
(Placing a premium
watch of Rs 10,000
on beside of the standard
watch of Rs 2,000 in a
watch showroom.)
Price hiking
(Less than 10%)
(Product X – Rs 100
increased to Rs 105
Product Y – Rs 200
increased to Rs 215)
Remodel pricing
(Ann Subs – Rs 5000
Hlf year Subs - Rs 2750
Qurtrly subs - Rs 1500)
Bundle pricing
(Individual insurance
policy – Rs 1000 p.a.
Family health insurance
policy – Rs 2500 p.a.)
Pleasure pricing
(Spend Rs 10,000 for
a payroll software and
save your valuable
time of business)
Offer supportive
pricing
(30% off on parker jeans
as company
loyalty discount)
Sweet pricing
(Bring Happiness to
Your Home for this
Christmas with Domino’s
Pizza at Rs 50. Only)
Level pricing
(Cheaper option – Rs. 90
Regular Option – Rs. 120
Luxury Option – Rs. 150)
Traditional pricing
(In India, Bata will
Follow the traditional
pricing for its
products (Shoes)