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Competitive - This is where a business sets the price based on it’s competitors. If the competition is selling their products for £29.99. They too will set the price to be at this point, Promotional - This is where the business offers better value for money on goods/services for a short amount of time, usually to grab market share away from competitors, Psychological - This is where the price is set by putting it under a price point that has some psychological significance. Companies will often set the price to be £99.99 rather than £100. This makes the customer feel like they are getting a good deal, Penetration - This is where the price is set low to get a foothold in the market. Once the product is established, the price is increased., Cost Plus - This is a pricing strategy where the business works out the cost and then adds on a margin., Skimming - This is where the business sets the price high initially to take advantage of the fact that the product is new and everyone wants one. Afterwards the price slowly comes down. Sony did this with the Playstation 4,

NCFE - Pricing Strategies

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