Optional Product Pricing
Optional Product Pricing Examples
- Printers and Ink Cartridges
- Flight tickets with carry-on fees, baggage fees, and food/beverage fees
- A low cost new phone with 2 year subscription attached
Deeper Insights Into Optional Product Pricing
Optional-product pricing is a method of pricing that has becoming increasingly popular in the airline industry. Plane tickets are generally priced fairly low, but then the airlines charge customers for all other travel needs. Despite an initial $100 flight, an average flyer can end up paying $25 to check a bag, $5-$10 for snacks, $2 for headphones, and other costs if they want extra leg room.
This pricing strategy deems core products and offerings at low costs, to then profit from selling more costly accessories elsewhere. With this strategy, companies are aiming to increase the amount a customer will spend after they begin as a buyer. The basic product being sold does not have many features, but can be enhanced through additional products sold at premium by the same company.