Main Pricing Strategies | SeQura

Setting an appropriate pricing strategy can make the difference between success and failure. Pricing strategies shape the value customers perceive and a company’s profitability. There are several approaches to setting prices for products or services, each with its own pros and cons. Below we review the main pricing strategies companies use.

How to determine a product’s price

Determining a product’s price is a fundamental step in the sales process. Which factors should you consider? What steps should you follow? Here’s the breakdown.

1. Calculate costs

Start by calculating production costs. This is essential for setting a fair, profitable price.

Include direct costs—materials and labor—as well as indirect costs—rent and overhead. Add them up to get the product’s total cost. Knowing this lets you set a price that covers expenses and generates profit.

2. Set your profit margin

Next, decide the margin you want over cost, based on your financial goals and the market you compete in.

If you aim for higher profitability, set a higher margin, while ensuring your price remains competitive versus similar products. Margin can also vary with demand and production costs.

With an appropriate margin, you can price to meet your financial targets and stay competitive.

3. Research the competition

Once cost and target margin are clear, analyze competitors’ prices for similar products.

Watching the market helps you see whether your price is competitive or needs adjusting. Consider product features, quality and your brand’s positioning to set a price that’s attractive yet profitable.

4. Consider external factors

Account for external factors that can influence value: inflation, input costs, seasonality and demand in your target market. If demand is high, you can adjust price accordingly to maximize returns.

5. Test and adjust

After setting the price, monitor performance in the market. If results fall short, consider adjusting—up or down—based on demand and competition. Testing and iterating are essential to ensure correct valuation and maximize sales and profitability.

Types of pricing strategies

With the “how” covered, here are the main strategy types and how SeQura’s services can make them even more effective.

Price skimming

Set a high initial price, then reduce it progressively over time or as the market matures.

Best for premium or new products, it maximizes early revenue from customers willing to pay more for exclusivity.

The drawback is the high upfront cost, which can slow adoption. SeQura’s “pay later” or flexible payment options help spread the initial outlay and ease adoption.

Psychological pricing

Use price endings or symbols to influence perception (e.g., €9.99 instead of €10).

SeQura’s “buy now, pay later” options reinforce this effect by giving customers budget flexibility, making prices feel more accessible and value higher.

Penetration pricing

Set low prices to quickly gain market share.

Support this with SeQura’s installment options so customers can pay over time. This attracts people who can’t or won’t pay in full, helping acquire customers faster and grow share.

Price discrimination

Charge different prices for the same product depending on customer or market characteristics.

With SeQura, you can tailor financing modes to each segment and align offers with customers’ payment capacity, maximizing revenue.

Dynamic pricing

Adjust prices in real time based on supply and demand.

SeQura can plug into a dynamic strategy by tuning price and payment conditions according to demand and customer behavior, helping optimize sales and profitability.

Differential pricing

Offer different prices for the same product based on specific criteria, leveraging differences in demand and willingness to pay.

For example, via SeQura, offer varied financing options to serve multiple segments: a higher price with convenient financing for those who value it, and a lower price for those who don’t need financing.