AB 209 STUDY Extraordinary Success/ab209study.com AB 209 STUDY Extraordinary Success/ab209study.com | Page 11

Describe what your business will be selling; Describe the
products and/or services (name 3–4 main ones) and the value
proposition. Based on your research of the competition,
describe the competition’s product/service and provide the
price. Then describe the pricing strategy you will
use and how the competition’s prices have affected your
competitiveness in the marketplace.
Pricing Strategies
Penetration Pricing = Pricing below normal, long-term price
to gain market share.
Skimming Pricing =Pricing an item high in the short term to
capture the prestige market?helps torecover start-up costs.
Variable Pricing/Dynamic Pricing Strategy =Lower pricing
for certain customers based on their abilityto pay. (Amazon
uses this type)
Price Lining =Different quality level product of a certain
type are priced by category. Ex:
Women’shandbags?Designer bags $300, name brand $200
and all other $100.
Market Pricing =pricing based on the market- what people
are willing to pay only works if there is verylittle or no
competitors.