Malcolm McDonald

Although factors such as margin and competition within a vertical market can make product pricing difficult to manage, pricing is one of the key components of a merchant’s offering. If for no other reason, it helps customers determine the value of that offering. Many pricing models exist, and in their book “Marketing in a Nutshell: Key Concepts for Non-specialists” (Butterworth-Heinemann, $32.95), authors Mike Meldrum and Malcolm McDonald offer the following four strategies and when to use each. * Market skimming: Used when you find yourself targeting a niche for which the benefits of a product have a high value, market skimming prices a product at