Unit Pricing

UnitPricing

UnitPricing

Itis a method of pricing where different products of variant quantitiesare priced uniquely leaving the consumer with the choice to choose(Baines, Fill &amp Page, 2011). The strategy is usually appliedwhere products are packed in different numbers or weights. Forinstance, when you visit a supermarket you will see that there areproducts of the same organization that are packaged and priceddifferently as their quantities vary. The price of 1 liter of milkcan be $1.5, while its half is $0.85. Thus, these products havedifferent prices because their units vary.

Oneof the famous strategies of this method that has been greatly used byorganizations is multiple pricing. It is a scheme where anorganization sells some products, say four at a particular price (4items for $1.00). The strategy has an effect of influencing consumersto think that the products are being sold cheaply unlike if they wereindividually displayed on the shelves. Therefore, consumers end uppurchasing more than they wanted as they consider buying in bulk asan economic advantage.

Thestrategy has always been used by organizations when they want toclear their stock and introduce new products in the market. Theproblem with this strategy is that when consumers get used to it,they might be on the lookout to purchase the products only when suchoffer is available. There is also another strategy of unit pricecalled bundling. In this strategy, a store chain operator may chooseto offer consumers two products at a particular price (Baines et al.,2011). Usually, the deal is offered by selling two commodities, onethat is desirable alongside another that is less popular at a pricethat is lower compared if they were sold separately.&nbsp

References

Baines,&nbspP.,Fill,&nbspC., &amp Page,&nbspK. (2011). Marketing(2nd&nbsped.). New York, NY: Oxford University Press.