Pricing

Pricing

Pricing is a very integral part of the mix as it affects how customer perceives the product on offer. There are a number of different strategies that a brand may adopt through the course of the life cycle.

For instance, AllOut priced the product high when it was first launched in the market. This created a premium image for the brand as the amount that it was priced at, it could not be purchased by the mass. Also, being a first mover in the market, a category creator, it could afford to charge a premium rate as there was no competition in the vaporizer market.

Over the years, AllOut has adopted a number of pricing schemes. They are - 

• Captive Pricing - The basic product is sold at little margin where as the ancillary product is sold at a higher margin. The vaporizer is the basic product and the ancillary is the refill. The customer can keep replacing/purchasing the ancillary as and when required.

• Product-Line Pricing - Companies normally develop product lines to cater to a varied class of customers. There can be the same product priced at different amounts to show maybe a quality difference. For instance, AllOut & Baygon serve the same purpose but are priced differently.

 

• Optional-Feature Pricing - Some products have an entry level price with the product having the basic features where as other modifications or additional features in the product has a different price tag to it. In cars for example, basic model may cost different and the high end model with leather seats and air bags may cost different. In case of AllOut, AllOut, the regular vaporizer is priced differently from AllOut Total, which claims to have twice the power of any other regular vaporizer.

Both the above products served the same purpose, but were different;y prices with one having said to have more power than the other.