There are numerous of pricing strategies for small business or home based business, some of the most important pricing strategies that are worth to look into detail include penetration pricing, fair pricing, premium pricing and discount pricing, other pricing strategies cover psychological pricing, predatory pricing, market oriented pricing and etc is also worth to read further.

i) Penetration pricing

The product or service is set at the lowest price in the market place, with this strategy the product or service have to be sold at high volume to meet the profit margin. This type of strategy is widely used by the franchiser, series chain retailer or the market leader and it is quite difficult for the small business to survive if to implement penetration pricing strategy, if they do so, they are actually competing with the giant players in the market.

ii) Fair pricing

The price is set in accordance to the quality or quantity of product or service to be sold. This strategy is widely used by the small business and home based business owner where a fair price is offered to the consumer and they can concentrate to develop the product or service to be sold in the highest quality.

iii) Premium pricing

The price is set at a higher level and this price strategy is more to be used on customized service, personalized product, and high technology product. The consumer is to pay a premium price for the design instead of the service or product itself.

iv) Discount pricing

Discount pricing strategy can be used to achieve the marketing or advertising objective such as during a seasonal festival. The price can be set at zero profit just to clear out the old stock where it maybe near the storage life time. There are several of discount pricing strategy that can be used such as quanity discount, seasonal discount, 2nd purchase rebate, trade in discount and so on.

These pricing strategies serve as a guideline while setting the price for your products or sevices, you can use these strategies for your home based business or customize one for the business, as long as it is suitable for the business.