Analysis of separate fees to be charged and implemented in a local health club that is offering the following services:
-Tennis Court Usage
Prestige or image pricing is a marketing strategy and/or form of branding that utilizes a premium pricing to suggest superior quality. The company sets an intentionally high price level in order to attract potential customers that are interested in affiliating themselves with some for of luxurious brand. This is important, as it provides analysis of competitors and results in establishing a type of loyalty idea to obtain more customers. An example of this pricing strategy for the local gym would be to offer add-ons to a membership plan that would appeal to the customer such as free nutritional meal prepping supplies.
Price bundling is a combination of two or more products and/or services being sold at a lower price than if they were sold individually. This marketing strategy is essentially to utilize within an organization, as it results in the customer feeling as they are acquiring a deal and paying less than what is offered through individual purchases (Price Bundling: Definition, Strategy & Examples | ProfitWell, n.d.). An example of this pricing strategy is offering multiple services at no additional cost to the customer when registering for an annual membership.
Product line pricing in the separation of services and goods within a specific set of priced categories. This is important for creating a variety of quality levels for consumers, in order to maximize profits (What Is Product Line Pricing: Definition, Examples, and 4 Strategies, n.d.). To implement this type of pricing strategy is establishing different prices for multiple different services, resulting in the perception that customers would be receiving better services at the same cost as everyone else
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