Dealavo Blog

Category: Pricing strategies

Loss leader pricing – definition and examples

Attracting a customer is a large part of success in retail. Led by this assumption, some companies decided to go with something called loss leader pricing. It’s a pricing strategy where you attract customers to your online store by selling one particular product below profit. However, as you will shortly find out, there are more...

Value-based pricing strategy – definition and examples

Every brand should thoroughly understand the role of pricing strategy. For customers, the price frequently indicates what products they are dealing with. Usually, expensive items are considered high-quality ones, while cheaper products – inferior. This approach is based on the assumption that price reflects the value behind the product. That’s why, in the value-based pricing...

Price index formula – definition and how to calculate price index

Every brand and every e-commerce business owner should be vitally interested in their price positioning. Why is that? Building a consistent pricing strategy is essential from the strategical perspective for building brand image. To manage it effectively and find out how your products are positioned on the market, you need reliable data about your competitors and...

Price skimming – a strategy for innovative brands

What do you think about lowering prices instead of increasing them? This is what price skimming is all about. Companies that create innovative products, in most cases, initially set high prices for them when they are introduced to the market for the first time, and then, as their products become outdated or replaced, gradually lower...

What is penetration pricing?

Penetration pricing is one of the most effective pricing strategies that allows companies all over the world to maintain a leadership position in their sectors. In this blog post, we want to take a closer look at this pricing strategy. What is penetration pricing? How can you devise an effective penetration pricing strategy? And does...