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Profit - Oriented Pricing Strategy - Explained

What is a Pricing Strategy focusing on Profit?

Written by Jason Gordon

Updated at September 28th, 2021

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Table of Contents

What is a Profit-Oriented Pricing Strategy? 

What is a Profit-Oriented Pricing Strategy? 

A profit-oriented pricing strategy means that we're going to set our product price based on a particular profit goal. That could be a target return - meaning we want to make a certain percentage on each unit that we sell or it could be that we want to maximize profit. 

As you probably know raising price will tend to decrease the number of units sold. So, setting the highest price is not always the way to maximize profit. 

Next, one thing that we need to keep in mind if we take a profit-oriented pricing strategy is this tends to put sort of upward pressure on our price. In other words, if our concern is profit, we tend to price a little higher than if we're more concerned with something like market share.

So, these are different ways that we could go about devising our profit - oriented pricing strategy.

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



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