pricing models
How charges work
Pricing models are the methods businesses use to set prices for goods or services.
Common types include cost-plus (adding markup to costs), value-based (charging what customers will pay), subscription, freemium, dynamic pricing (adjusting based on demand), and tiered pricing.
Their pricing model doesn't work for enterprise customers.
The term appears frequently in software, consulting, and startup contexts.
- penetration pricingLow initial prices strategy
- race to bottomCompetition via lowering standards
- profit marginsPercentage kept from sales
- revenue streamsChannels generating business income
- cost-benefit analysisSystematic comparison of advantages, disadvantages
benchmarking · undercutting · dynamic pricing · surge pricing · premium pricing · sticker shock · good value · tiered pricing · à la carte · pay per use · cost analysis · competitive analysis · market positioning · discount · flat-rate · value proposition · competitive advantage · bidding
pricing modelsgift economy
Giving without explicit repayment
barter systems · open access · commons · mutual aid · freemium