Product Line Pricing

Product line pricing is a pricing strategy where products within the same line are priced at different levels based on their features, quality, and target market. This strategy allows businesses to cater to different customer segments and maximize profitability by offering a range of options at various price points.

Purpose of Product Line Pricing

The main objective of product line pricing is to capture a larger share of the market by appealing to different customer segments. By offering products with varying levels of features and prices, businesses can target both price-conscious customers and those willing to pay a premium for additional benefits. This strategy also helps to create a perception of value and quality within the product line.

Examples of Product Line Pricing

One common example of product line pricing is seen in the automobile industry, where car manufacturers offer different models within the same line, ranging from basic to luxury options. Another example is tech companies offering multiple versions of the same product, such as smartphones or laptops, with varying features and price points.

Overall, product line pricing is a strategic approach that allows businesses to meet the diverse needs of their customers while maximizing revenue and profitability.