Status Quo Pricing Strategy - Explained
What is Status Quo Pricing Strategy?
Written by J. Mance Gordon
Updated at April 17th, 2024
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What is Status Quo Pricing Strategy?
A status-quo pricing strategy involves setting our product price equal to some benchmark over time. In other words, it can be that we match our competitors price. We engage in price matching.
Another way we could go about this is what's called a price guarantee. In other words, if we keep our price the same over time and we guarantee that it won't change, that's a status quo pricing strategy.
You might say well why would you do that? Why would you keep your price the same?
One reason you might do that is if you want to compete on other factors things besides price. So, for example, if you think you can make a profit selling your product at the same price as the competitions (because your product is better it's just a higher quality or it has unique features), you might engage in a status quo pricing strategy.
In any case, status quo pricing relies on the idea that we're going to keep the price the same as something whether it's our price or the competition's price.
Related Topics
- What is the Right Price for a Product?
- Competition-Driven Pricing
- Profit-Oriented Pricing Strategy
- Sales-Oriented Pricing Strategy
- Status Quo Pricing Strategy
- Value-Based Pricing Strategy
- Penetration Pricing Strategy
- Manufacturers Suggested Retail Price (MSRP) Definition
- Markdown
- Price Skimming
- Why Give Discounts?
- Trade Allowances
- Charging for Product Transportation
- Legal Issues with Pricing
- What is Product Dumping?
- What is Price Fixing?
- Why is Price Fixing Harmful?
- What is Price Discrimination?
- Why Pricing Discrimination is Harmful