Product mix pricing refers to setting prices for a range of related products while considering how they interact with one another. It helps you boost revenue, manage inventory, and appeal to different customer segments. The strategies include product line pricing, optional-product pricing, captive-product pricing, by-product pricing, and product-bundle pricing. An example is when a company sells a basic printer at a low price (to attract customers) but charges more for the ink cartridges (captive pricing). Restaurants use product bundling when they offer combo meals at a slight discount. Effective product mix pricing considers demand, competitor pricing, customer perception, and cost structure. For small businesses, it provides flexibility and can increase profitability when done strategically.
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