Smallholder Commercialization
Market Pricing
Definition of pricing
- Pricing is putting the sale value of a good, commodity or a service for sale.
- Pricing as a strategy is important to all value chain actors so as to ensure the smooth flow of commodities making a maximum return to the product being sold.
- Pricing is highly associated with quality, quantity and value.
- To the small holder farmer or traders the price s/he attaches to his/her products will enable him/her to make either profit or loss
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Pricing Strategy |
Description |
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Discount pricing
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Reducing prices to reward customer responses such as paying early or promoting the product. |
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Competitive pricing |
This is adjusting your prices based on your competition e.g. pricing less than the hotel prices |
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Segment pricing |
Adjust prices to allow for differences in customers, products or location |
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Psychological pricing |
Adjust prices for psychological effect |
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Promotional pricing |
Temporarily reducing prices to increase short- run sales |
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Geographical pricing |
Adjusting prices continually to meet the characteristics and needs of individual customers and situations
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International pricing |
Adjusting prices for international markets |