Evaluation of Price Points/Price Lining (1 Viewer)

[Dreams]

I understand price lining/price point strategy is when you price similar products into similar prices, or price points.

Now my question is, what are the advantages/disadvantages/reasons for using this strategy?

 

[Dreams]

Anyone? Or should I not bother.

I just like knowing the logical reasons behind things and how things work conceptually.

Thats why I HATE MATHS, goddamnit.

"Use this formula"

"why"

"just use it and you get the answer"

"fuck you"

 

[H4wk1n4t0r]

Well, I had no idea, so I turned to Wikipedia.
"Price lining is the use of a limited number of prices for all your product offerings. This is a tradition started in the old five and dime stores in which everything cost either 5 or 10 cents. Its underlying rationale is that these amounts are seen as suitable price points for a whole range of products by prospective customers. It has the advantage of ease of administering, but the disadvantage of inflexibility, particularly in times of inflation or unstable prices."

 

[phoebeee]

Doesn't it just increase accuracy when you're evaluating market objectives? Like, it makes it easier to like, plan sales and like, yeah.

 

[Dreams]

lol phoebe, perhaps

and like, yeah.

<:3

 

[phoebeee]

Perhaps? It's definately! Fool...

ily, like, xo, like, xo.

 

[Dreams]

this is no time to be thinking about sex phoebe

LIKE, FOCUS ON THE HSC PLZ

>:3

 

[phoebeee]

Omg, like, wtf. You're the dirty-minded one.
:jaw:

 

[Dreams]

i've been studying all day phoebe

MEN HAVE NEEDS

:3

/runs away

PS: give meh your maths notes ^_~

 

[phoebeee]

Excuses excuses. And sorry, I don't have maths notes. Well actually I do but they're allll handwritten. I've kind of neglected maths... I'm going to get like 75

 

[Eddykungfu]

It allows Consumers to both find products quickly, easily/efficiently and also display other products of similar status

For an example, If you go to a watch store, the first thing they ask you, is "How much do you wish to pay?".

If you say >1000, they will bring you to a specific area with Goods such as "Rolex" etc.

If you say Cheap/ <100 they will similarly bring you to the section with the lower-price watches.

 

[phoebeee]

It allows Consumers to both find products quickly, easily/efficiently and also display other products of similar status

For an example, If you go to a watch store, the first thing they ask you, is "How much do you wish to pay?".

If you say >1000, they will bring you to a specific area with Goods such as "Rolex" etc.

If you say Cheap/ <100 they will similarly bring you to the section with the lower-price watches.

That's wicked.

Wicked as in cool! Not the watch store is wicked.

 

[Dreams]

cheers eddy

that makes more sense!

much more helpful than the sexual advances of this phoebe random

 

[phoebeee]

Omg. This is um, anti-discrimination! You're not ethical or legal.