The main features of pricing policies are listed below:
Pricing policies provide the general framework within which pricing decisions are taken. It provides the guidelines without which pricing strategy is formulated and implemented.
image source: iampyourbrand.com
(a) One Price Policy:
ADVERTISEMENTS:
Under this policy, all the customers who are purchasing a particular quantity at a particular time are charged the same price i.e., the price is fixed.
(b) Flexible Price Policy:
Under this policy different buyers are charged different prices for the same quantity purchased. The difference in pricing depends on bargaining power of buyer, his paying capacity, personal relationship between buyer and seller and many other such factors.
(c) Meeting Competition Policy:
The companies adopting this policy adjust their prices according to that of the competitors.
(d) Under the Market Policy:
It is a policy in which the company always keeps its prices less than those prevailing in the market.
(e) Bait Pricing Policy:
ADVERTISEMENTS:
The marketer keeps low priced and high priced goods. He attracts the consumer by showing low priced goods. Once the customer gets attracted towards the low priced goods, he is told about its drawbacks and is encouraged to purchase the other high priced product.
(f) Price Lining Policy:
The various products are priced according to their quality standards. The products may be classified as good better and best.
(g) Skimming Pricing Policy:
It is a policy, which aims at extracting maximum profits from the market and as such the manufacturer keeps high prices.
(h) Uniform Delivery Pricing Policy:
It is one in which the firm bears full transportation cost irrespective of location of buyers.
(i) Production Point Pricing Policy:
ADVERTISEMENTS:
It is one in which the firm quotes ex-factory price. It does not bear the transportation cost. Such a policy may be ‘ex-factory’ or ‘free on rail’ (F.O.R.).
(j) Zonal Delivery Pricing Policy:
It is one where the firm divides the country into different zones and quotes uniform prices for each zone.