Question: What Is Product Line Pricing?

What are the 5 product mix pricing strategies?

Five product mix pricing situationsProduct line pricing – the products in the product line.Optional product pricing – optional or accessory products.Captive product pricing – complementary products.By-product pricing – by-products.Product bundle pricing – several products..

What are the 5 pricing strategies?

Types of Pricing StrategiesCompetition-Based Pricing.Cost-Plus Pricing.Dynamic Pricing.Freemium Pricing.High-Low Pricing.Hourly Pricing.Skimming Pricing.Penetration Pricing.More items…•

What was Apple’s first product?

Apple I – the first product – 1976 The original Apple computer, also known as the Apple I, is the product that kicked everything off in 1976. It was designed and hand-built by Apple co-founder Steve Wozniak using funds from the sale of his HP-65 calculator and his friend Steve Jobs’ VW van.

What is product line pricing with example?

That makes product line pricing, being able to cater to different customer segments, key to their success. It goes for deals on the same car, too. The same Honda Accord can cost $10,000+ more if you get the one with leather seats, a subwoofer, and a turbocharged engine, as opposed to a standard Accord.

What is product line example?

For example, a cosmetic company that’s already selling a high-priced product line of makeup (that might include foundation, eyeliner, mascara, and lipstick) under one of its well-known brands might launch a product line under the same brand name but at a lower price point.

What is the difference between product line and product item?

A product item is a specific version of a product that can be designated as a distinct offering among an organization’s products. A product line is a group of closely related products offered by an organization. An organization’s product mix includes all the products it sells.

What is product line strategy?

A product line strategy is a coherent approach to advance related products. It guides managers to improve the performance of their products and services, and to avoid disjointed actions and investments. A good strategy will respond to change, whether major disruptions or incremental.

At what stage of the product life cycle is price usually the highest?

Introduction stageCosts are Reduced: With new product development and marketing, the Introduction stage is usually the most costly phase of a product’s life cycle. In contrast, the Growth stage can be the most profitable part of the whole cycle for a manufacturer.

What are the 4 types of pricing strategies?

Apart from the four basic pricing strategies — premium, skimming, economy or value and penetration — there can be several other variations on these. A product is the item offered for sale. A product can be a service or an item. It can be physical or in virtual or cyber form.

What is the latest Apple product?

The latest version of iOS and iPadOS is 14.2. Learn how to update the software on your iPhone, iPad, or iPod touch. The latest version of macOS is 11.0.1. Learn how to update the software on your Mac and how to allow important background updates.

What do you mean by product pricing?

By definition, price is the money that customers must pay for a product or service. … Pricing of the product is something different from its price. In simple words, pricing is the art of translating into quantitative terms the value of a product to customers at a point of time.

What is optional product pricing examples?

Optional product pricing considers optional or accessory products along with the main product. For example, A car buyer has a choice to order a music system, GPS navigation system, or not to order such high quality and just simply buy a car. Another example is a refrigerator that comes up with an optional icemaker.

What is Apple’s product line?

Apple Inc. … Its products and services include iPhone, iPad, Mac, iPod, Apple Watch, Apple TV, a portfolio of consumer and professional software applications, iPhone OS (iOS), OS X and watchOS operating systems, iCloud, Apple Pay and a range of accessory, service and support offerings.

What are the 3 product mix strategies?

The major alternative product mix strategies (given by William Stanton and others) have been discussed briefly as under:Expansion of Product Mix: … Contraction of Product Mix: … Deepening Product Mix Depth: … Alteration or Changes in Existing Products: … Developing New Uses of Existing Products: … Trading Up: … Trading Down:More items…

What is an example of cost based pricing?

A Cost-Based Pricing Example Suppose that a company sells a product for $1, and that $1 includes all the costs that go into making and marketing the product. The company may then add a percentage on top of that $1 as the “plus” part of cost-plus pricing. That portion of the price is the company’s profit.

How do you do cost based pricing?

Cost-based pricing involves calculating the total costs it takes to make your product, then adding a percentage markup to determine the final price. For example, let’s say you’ve designed a product with the following costs: Material costs = $20. Labor costs = $10.

What is product mix pricing strategy?

The product mix is the collection of products and services that a company chooses to offer its market. Pricing strategies range from being the cost leader to being a high-value, luxury option for consumers.

What are the important product mix and product line decisions?

Four important dimensions of a product mix can be identified. These are: width, length, depth, and consistency. The first of the product mix decisions refers to the product mix width. The width is all about the number of different product lines the company carries.

What are the types of pricing?

Types of Pricing StrategiesDemand Pricing. Demand pricing is also called demand-based pricing, or customer-based pricing. … Competitive Pricing. Also called the strategic pricing. … Cost-Plus Pricing. … Penetration Pricing. … Price Skimming. … Economy Pricing. … Psychological Pricing. … Discount Pricing.More items…•

What is an example of a by product?

A by-product can be useful and marketable or it can be considered waste: for example, bran, which is a byproduct of the milling of wheat into refined flour, is sometimes composted or burned for disposal, but in other cases, it can be used as a nutritious ingredient in human food or animal feed.

What product does Apple sell the most?

iPhoneThe iPhone is Apple’s most popular product, selling 46.89 million units in the fourth quarter of 2018. Apple’s other signature products, the iPad and the Mac computer, sold 9.67 and 5.3 million respectively in the same quarter.