Skimming - this is when a business sets a high price for its goods or services in an attempt to gain profits quickly. Used for products with a short life cycle
Penetration Pricing - a business sets a low price initially hoping to attract consumers. Used to help establish a new product in the market
Premium/prestige Pricing - a high price is set in an attempt to create an image that indicates a high level of quality
Psychological Pricing - this involves setting a price that sounds less than it really is to attract customers. For example charging �9.99 instead of �10
Loss Leaders - a product will be priced so cheaply a business will lose money in hopes of attracting customers who will then purchase other products to make up for the loss. An example would be �buy a meal get a drink free�
Competition-based Price - setting the price below its competitors price in order of gaining additional sales
Predatory/Destroyer Pricing - when an established business cuts its price to make any new business unable to compete with them. This type of pricing is seen as anti-competitive and businesses can be punished for it
Market-based Pricing - for products that are very similar or identical a business will take its prices for the product from the market. An example of this would be petrol
Promotional Pricing - �buy one get one free�, �price reductions�, �3 for 2� etc
Cost Plus Pricing - this pricing involves using actual costs for the product plus whatever profit the business wants to earn on that product
Contribution/Marginal cost pricing - this is a method where fixed costs are ignored and the business only considers the variable costs of production
Price discrimination :