Pricing structures

Pricing structure is the strategy and planning of pricing, bundles, value and discounts. Base price, creating bundles (1 for $2 or 6 for $10) and deciding on promotional sales strategies.

Choosing your product or service’s baseline rrp must be taken into consideration with your marketing plan with the main aspects being market share, product / brand perception and promotional tactics.

If you where new into a market with no market share and little or no brand awareness then your pricing structure would consist of introductory sales price to get awareness to your new product.

Getting more per transaction is a positive outcome, Whether it be a customer buying six of your drinks in a pack or paying annually on a subscription service rather than month to month.  Having more financial security and knowledge that you will have a minimum of  X users comes with the advantage of a longer sales term. Instead of wondering if users will leave at the end of their month to month payment term, having an annual pricing plan that works out cheaper than paying month to month for 12 months makes the little loss in money worth it.

Another advantage of bundling your products is having consumers buy more than they actually need, there for spending and giving you more money.  Buy 2 get 1 free is a perfect example of this. You are encouraging the consumer to spend that bit more.

I see the key to great pricing structures is being highly flexible and adaptable. That means you can change quickly to reflect trends or seasonal demand. Having your product on a promotional pricing when consumer demand is high for that product or similar, makes it highly attractive.

If you offer a service having a free option can help get any unsure consumers using your service and then seeing how wonderful it is. Freemium is the word for this and it is notorius for being filled with ads and missing many feautures, all to make the user more inclined to purchase the paid verison.