What Is a Typical Price?

Graded price, also known as step price or stage price, refers to a form of pricing in which the production stages of a certain product are specified in advance and prices are lowered in order to increase the resilience of prices.

Grading price

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Graded price, also known as step price or stage price, refers to a form of pricing in which the production stages of a certain product are specified in advance and prices are lowered in order to increase the resilience of prices.
Chinese name
Grading price
Also known as
Ladder price
nickname
Stage price
Nature
Form of pricing
The implementation of graded prices is usually divided into the following stages:
1. The production stage with higher production costs, but it will inevitably fall rapidly. During this period, the highest price of the stage will be implemented to obtain a certain profit as a standard.
2. The stage where the actual production costs are roughly consistent with the planned costs. During this period, the middle level of the stage price is implemented to ensure that the plan is profitable.
3. The product gradually declines. During this period, the lowest level of price will be implemented to reduce the profitability of products, promote the elimination of old products and the development of new products.
In order to strengthen its competitive advantage, Oaks Air Conditioning implemented a seasonal ladder price strategy from 2004 to 2005. This strategy is mainly targeted at the off-season sales. In order to seize the off-season market, Oaks increased the investment and promotion of promotional resources, and strengthened the sales pull during the off-season through various means such as ladder price strategy, consumer incentives, static promotions, on-site activities, and theme events deducted from media promotion. Through the strategy of the terminal, guide consumers who want to buy coins to actively purchase this brand's products in the off-season, so that they will not be off-season!

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