Why is price lining a good practice for retailers?
The price lining technique has many benefits for both retailers and consumers. As retailers can generate more revenue by adopting this technique because most customers end up purchasing products at higher prices as they believe that more the price, the better will be the quality of the product.Click to see full answer. Subsequently, one may…
The price lining technique has many benefits for both retailers and consumers. As retailers can generate more revenue by adopting this technique because most customers end up purchasing products at higher prices as they believe that more the price, the better will be the quality of the product.Click to see full answer. Subsequently, one may also ask, what is an example of price lining?Price lining is a cost-centered strategy where you differentiate members of a product line based on price and features. Apple, for example, offers several current models of iPhone and iPad at different prices, distinguished by the added features of the more expensive models.Subsequently, question is, what does line price mean? Product line pricing refers to the practice of reviewing and setting prices for multiple products that a company offers in coordination with one another. If you offer more than one product or service, consider the impact that one product’s or service’s price will have on the others. Simply so, which of the following is a benefit of price lining? Apart from offering purchasing value to consumers, price lining has several other advantages. Pricing products or services using this method offers companies higher profit without a high investment. Price lining products also results in reduced inventory, which in turn reduces the cost of storage and upkeep.Why is pricing important in retail?Pricing, while not a glamorous part of business, is arguably as important, if not more so than understanding your customers. This is because in pricing products, you’re creating a certain perception around your store. Price too high and your customers will view you as too expensive.
