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Setting the right price for your product or service is part science, part psychology—and it can make or break your business. A solid pricing strategy balances profitability with market demand and customer perception.

Here are four common approaches:

1. Cost-Plus Pricing
   Add a fixed markup to your cost. Simple, but doesn’t always reflect true market value.
2. Value-Based Pricing
   Price based on the perceived value to the customer. Ideal for services, luxury goods, or B2B offerings where differentiation matters.
3. Competitive Pricing
   Match or undercut competitors. Useful in crowded markets but may trigger price wars.
4. Penetration or Skimming
   Penetration: Start low to gain market share, then raise prices.
   Skimming: Launch at a high price, then lower as competition increases.

Also consider:

• Psychological pricing (“$9.99” instead of “$10”)
• Bundling and tiered plans
• Dynamic pricing models (based on demand, seasonality, etc.)

Test and adjust your pricing regularly. Use A/B testing, customer feedback, and sales data to refine your strategy.

Ultimately, good pricing aligns with your brand, market position, and customer expectations—while keeping you profitable.