Page 39 - IMDR MSME BOOK 2021

Managing Finance in Micro, Small & Medium Enterprises
substitutes available, the product loses its premium
value and hence the price must be dropped immediately.
Thus, to get maximum margins from their products,
innovative rms keep launching new variants so that
customers are always in the discovery phase and paying
the required premium.
4) Bundle pricing
In order to attract customer to busy two or more product
together (such as offer of 1 + 1 free), the deal has been
designed by combining different products together as a
bundle. It is mostly used for stock clearing purposes.
5) Psychological pricing

This pricing policy has been devised to have a huge
impact psychologically on customers by translating the
pricing into a small incentive. The customers are more
attracted to Rs.499, Rs.999 etc, it makes a great
difference in the mind of the customers. This strategy
can frequently be seen in the supermarkets and small
shops.

6) Price discrimination
Price discrimination is a strategy adopted by the rm
where it charges customers different prices for the same
product or service based on various factors. The rm
places customers in groups based on certain attributes
and charges each group a different price.
To know the understanding to signicance of pricing
policy the question has been asked to the respondents
that do they calibrate the impact of price changes on
prots and cash ows. Most of the respondents 76% of
the sample business units calibrate the impact of price
changes on prots and cash ows whereas 24% do not
calibrate such impact. When asked about general pricing
strategy opted by the sample units, it is found that 44%