Category Archives: Price


Future customers

Apple offers students and university staff special discounts on products. It may seem unfair to other buyers, but it’s accepted practice. This is quite common in some markets: although the product is the same, people accept that other customers get a better deal. But it’s more usual in service industries. So museums or shows will offer discounts to certain groups … Continue reading


Price skimming

Producers of mobile phones, digital cameras, flat screens and similar hi-tech products often have to pump huge budgets into R&D. To get this investment back – and break even as quickly as possible – they tend to “price skim”. This involves using high prices to remove the “cream” from the market before the competitors catch up. Thankfully innovators are willing … Continue reading

Own label compensation

Some companies deliberately sell the same product for a much lower price, even though there is a real danger customers will find out. Why? * To recruit customers to the brand (Boss selling ‘seconds’ in factory outlets can attract people who may trade up next time to higher price products) * To clear out stocks * To help cover fixed … Continue reading


Discounter hotel?

When your pricing strategy is like Aldi’s – low price, always low price, but good reliable quality – you’ll be pigeon-holed as a “discounter”. There’s nothing wrong with this strategy, as long as you sell products in high volumes. Which is precisely what Aldi does – it’s the No1 in Germany apparently (though it would be nice to see this … Continue reading