Revenue
Product Line Pricing
Definition of
Product line pricing is a pricing strategy used by businesses to set the prices of their products based on their position in a product line or the relationship between different products in the line. This strategy involves setting different prices for products within the same product line, taking into account factors such as features, quality, and target market. For example, a company that sells laptops can have a product line that includes different models with various features and specifications. The prices of these laptops can be set based on their position in the product line. The basic model can be priced lower than the premium model, which offers more advanced features and higher specifications. Product line pricing can also be used to create bundles or packages of products, where the price is set based on the combination of products in the bundle. This can be seen in fast-food restaurants where they offer meal deals that include a main dish, side, and drink at a discounted price compared to buying them separately.
