What is price lining?

Price lining is a pricing strategy where a company offers different products or services within the same category at various price points. The products are typically grouped into different "lines" based on quality, features, and pricing.

The goal of price lining is to cater to different segments of customers with varying budgets and willingness to pay. By offering products at different price points, a company can attract a wider range of customers and increase overall sales.

Price lining can also help create a sense of value and differentiate products based on their features and quality. Customers may perceive higher-priced items as premium or luxury options, while lower-priced items are seen as entry-level or budget-friendly choices.

Overall, price lining allows businesses to effectively target different customer segments, maximize revenue, and create a competitive advantage in the market. It is a common pricing strategy used by retailers, manufacturers, and service providers across various industries.