The price fixing of your product is undoubtedly one of your biggest entrepreneurial challenges. The price fixing you set can help you convert a suspect to a customer, or on the contrary hindering your business.
As a rule, the higher the price of your product, the less people pay it. In question, there is the overload of products similar to yours available on the market. To please your suspects, you must therefore offer them something completely innovative . Or you can opt for a little more marketing price fixing strategies
But what is a pricing strategy? It is all of decision-making processes related to pricing. So, you not only need to analyze how much your product should cost, but also how much your potential customers are willing to pay to obtain it.
There are many methods for fixing price. It all depends on your target audience .
Price fixing strategies based on
This price fixing strategy is carried out according to the added or perceived of your products or services. Pricing takes into account the perception of the consumer and the interest of the product on the market . To set up a value -based pricing strategy, the following steps must be followed.
Study your target
The basis of a good value -based price fixing strategy Indeed, it is essential to know the customer's needs and provide him with something that meets it. consumer feedback best database .
Price fixing strategies by segment (2024)
| Strategy | Adapted sector | Ideal market size | Medium margin | Benefits | Disadvantages |
|---|---|---|---|---|---|
| Psychological price | E-commerce, retail | Large market (B2C) | 15-25% | Increases impulsive purchase | Can harm the premium image |
| (ex: € 9.99 instead of € 10) | |||||
| Premium price | Luxury, Tech, SaaS | Niche (B2B/B2C) | 40-70% | Values the brand | Limited sales volume |
| (High price positioning) | |||||
| Penetration price | Startups, services | Competitive market | 5-15% | Rapid acquisition of customers | Price war risk |
| (Low price at launch) | |||||
| Dynamic price | Tourism, events | Variable | 20-50% | Maximizes income | Implementation complexity |
| (Variation according to request) | |||||
| Subscription price | SaaS, media, services | Recurring market | 30-60% | Recurring income | Unsubscribe rate to monitor |
| (Recurring model) | |||||
| Cost price+ | Industry, catering | Small business | 10-30% | Simplicity of calculation | Not very competitive on saturated market |
| (Cost + fixed margin) | |||||
| Freemium price | Software, mobile apps | Digital market | 5-20% (conversion) | Massive acquisition | Low paid conversion rate |
Sector analysis for price fixing
1. E-commerce & Retail
- Dominant strategy : psychological price + subscriptions
- Example : Amazon Prime (subscription) + price at 0.99 €
- Conversion rate : +22% vs round price (nielsen 2025)
2. SaaS & Tech
- Winning strategy : Freemium → Premium
- Data :
- 8% of freemium users converted into paid
- LTV 3X higher than one-shot models (Gartner)
3. Catering
- Trend 2024 : Dynamic price (eg Uber Eats)
- Impact : +15% income in off -peak hours
Choice guide by business size
| Business size | Recommended strategy | Example |
|---|---|---|
| Micro-enterprise | Cost+ or psychological price | Craftsman: Production cost + 25% |
| Startup | Penetration → premium | SaaS: 6 months at broken prices |
| SME established | Subscription + Dynamic price | Hotel: Variable prices |
| Large company | Multi-level strategy | Apple: entry -level at Premium |
Errors to avoid (data 2024)
- Subsessor its costs : 62% of startups correct their prices up after 1 year (CB Insights study)
- Copy competitors : 78% of consumers pay more for a clear USP (McKinsey)
- Neglecting elasticity : in B2B, an increase of 10% of the price reduces demand only 5% (HBR)
Tools to optimize your prices
- For the analysis : Prisync (competitive benchmark)
- For SaaS : Profitwell (LTV analysis)
- For e-commerce : REPRORDEXPRESS (Dynamic Prize)
📌 Expert Advice :
“Always test 3 price strategies in parallel on identical segments for 3 months before generalizing. "
- Marc Dupont , director pricing at Deloitte Digital.
Magileads ' automatic prospecting platform allows you to collect valuable data on your prospects.
Keep your competitors to the eye when fixing price
You must absolutely know the price of products similar to yours on the market. If the value created and the marketing of a product are not sufficient, the consumer will choose the least expensive on the market. Examining competition will also allow you to determine what could make your offer unique .
Determine the value of differentiation
Once the research phase is completed, it is necessary to highlight the quantitative value of the distinctive features of your product. Start by assigning an amount that reflects the market key features Add them up, the total sum will be the price of your product.
Cost-based pricing strategies
A cost-based pricing strategy is generally used to obtain a higher percentage of production . There are two main methods for this purpose.
The cost price fixing increased
This strategy consists of the cost of production by a percentage to obtain the final price.
For example, to obtain a cost plus price, a sandwich shop will add up the total cost of its ingredients and labor. Then, it can set the price so as to obtain the expected profit margin .
However, this approach does not take into account external factors such as competition and market demand . However, if your percentage of increase is too high, you may miss sales . If on the contrary it is too low, you will miss good opportunities to make a profit.
Balance price fixing
The equilibrium price is set in proportion to production . Companies usually use this method to determine the number of units to sell to cover the manufacturing cost and generate profit.
Price fixing strategies based on competition
A competitive price strategy is to fix the cost of a product or service compared to the market rate. By analyzing the competitors' data, you will know how to be more competitive.
Any pricing including external factors must take into account the competition. This strategy includes several price fixing techniques .
The penetration price
This strategy consists of setting a price much lower than those of the competition in order to gain market share, and subsequently increase it.
The price of skimming
Here, the price is much higher than those of competition in order to target an audience with high purchasing power . This price then decreases over time, depending on market development .
The high and low price
This method involves significantly reducing the price of a product . The decline occurs all at once and not gradually as in the skimming strategy.
User opinion & expert returns on price strategies
👩💻 Entrepreneurs testimonials
Sophie Lambert - founder of a brand of organic cosmetics
"at launch, I opted for a premium price to differentiate myself from major brands. Result: a faithful clientele that values quality, but a slower volume of sales at the start. After 1 year, I added a range of price entry to expand my audience. »»
Mehdi Touati-Co-founder of a fitness app
"The Freemium model was key for our growth. 8% of free users have been converted into paid subscribers in 6 months. The secret? Really useful exclusive features, such as personalized coaching. »»
Laura Fernandez -Manager of a Coworking coffee
“I tested the dynamic price for room reservations: -20% in off -peak hours. It completed Creals that were empty before, and it allowed me to make a better profitable space. »»
🎤 Expert analysis
Prof. Nathan Lefèvre - Economist specializing in pricing strategy
"In 2024, prices personalization became essential, especially in B2B. AI tools make it possible to adapt the prices in real time according to the customer's profile, without sacrificing the margin. »»
Élodie Marchand - Pricing consultant for SMEs
“Many companies are mistaken by moderating their price on those of the market leader. You must first understand its own perceived value. A customer questionnaire can reveal surprising insights. »»
Dr. Hugo Silva - Expert in consumer behavior
"The psychological price (ex: € 19.99) still works, but be careful not to abuse it. On high -end products, a round price (eg € 20) returns a more transparent image. »»
Amina Khadra-Marketing Director of a SaaS Scale-Up
"Our initial error? Underestimate the customer cost. We increased our prices by 15% after an LTV study, and paradoxically, our conversions climbed. Proof that the price is also a quality signal. »»
🚀 Concrete case
• Julien and Maxime (artisanal marketplace)
“We launched with low prices to attract the first sellers. After 6 months, our commissions have gradually increased while adding services (logistics, promo). Result: a turnover multiplied by 3 without losing our community. »»
• Greeneat (Eco-responsible delivery service)
“We adopted a variable pricing system depending on the distance and the emergency. Customers understand the logic perfectly, and it allows us to cover our costs while remaining competitive. »»
💡 The word of the end on the price fixing
“Setting your price is like composing music: you have to find the balance between perceived value, customer costs and psychology. And sometimes, test several mixtures before finding the right pace. »
- Claire Dubois , founder of Pricing Futures.
