Price Points - Marketing Strategies

[Juliesokha]

Hello,

Can someone please explain price points to me? Thx you

[Opengangs]

Hi, Juliesokha!

Price points is a pricing strategy businesses will often use to compete with their competition. They are prices that are predetermined, and such fluctuations in the economy will have no effect on the price. They can be seen as a suitable strategy for "price lining" (not part of the syllabus). Businesses that often use this strategy involve clothing stores, where prices are set, regardless of the manufacturing and economic status.

[mattmorley]

 My understanding is that a business within its product mix sets a few 'points' in its pricing as in pre-determined price levels eg 40$, 80$, 150$ where various types of the businesses products are placed under each point. This is central to refelcting the quality of simultanous or diffrent products through diffrent price levels. This is utltised by Tiffany, where their jewlellery is placed under diffrent price levels or categories that enables a consumer to diffrentiate the quality and value of its products