Pricing Strategy:

There are numerous price strategies used by businesses to take advantage of customer pricing psychology. Three of the more common are listed below.
Multiple Unit Pricing
Simply put, this is a strategy where the customer perceives quantity buying as involving greater savings. An example is an item that normally sells for 49 cents. Multiple pricing would change this situation to a two for 89 cents or perhaps three for $1.39 price. In general, multiple unit pricing is usually effective in increasing immediate sales. However, this pricing technique may not increase the rate of consumption of the product. People will buy extra units of the product and use them as needed.
Several factors ought to be considered when using multiple unit pricing. First, the multiple-unit price has to be easy to understand. Eight for 79 cents is usually less effective than simple multiples of two for 19 cents. Second, the bargain concept of multiple pricing is not usually effective over the $10 range. It is, however, very effective for items within the $1 range.
Odd Number Pricing
Odd number pricing refers to setting a price just below the psychological breaks in the dollar, such as a price is set at 49 cents or 99 cents rather than 50 cents or $1. Prices may be set at 19 cents or 49 cents or $19.95. This gives the psychological impression to the customer that the price is not 20 cents or 50 cents or $20, but less. Odd number pricing is often avoided in prestige stores or with higher priced items. An expensive dress could be priced at $150, not $149.95.
Prestige Pricing
Prestige pricing refers to high markups and/or pricing above the market. Many consumers are willing to pay more for a product or service because it is felt the product or service is of higher quality or possesses brand or manufacturer prestige. Usually above-market pricing can be done only when the product is unique or distinctive, or when the seller or manufacturer has acquired prestige in the field.