From the course: Pricing Strategy Explained
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Examples of pricing models
From the course: Pricing Strategy Explained
Examples of pricing models
- Let me give you some additional examples in each one of the categories. So, for cost-based pricing, products like shampoo, furniture, retail apparel, retail apparel is like basics, apparel basics, home cleaning, even a Ford Fiesta might fall into this category for cost-based pricing. Now, for market-based pricing, other examples would be Pepsi-Cola or Coke, Lyft, nail salons, hotels and gas, and hotels and gas are kind of interesting because they have that fluctuation in price where you can go to a hotel in New York in January and the cost is $199. For that exact same room if you go in June during the U.S. Open when the weather's nice, it's $600. And when you go on New Year's Eve, it's $1000. But the entire market moves with that same pricing strategy, so it doesn't mean that the price is necessarily set in market-based pricing. Pretty interesting. And then the final list would be value-based pricing, and a couple…
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