Definition (1):
Optional product pricing means the pricing of optional or accessory products along with the main product.
Definition (2):
When a business decides of selling their products for a quite cheaper price than they generally would and depend on the optional products’ sales to meet up the difference, it is called Optional product pricing.
Definition (3):
“Optional product pricing is when a company sells a base product at a relatively low price, but sells complementary accessories at a higher price.”
For example, a car buyer may choose to order a global positioning system (GPS) and Bluetooth wireless communication. Refrigerators come with optional ice makers. And when you order a new PC, you can select from a bewildering array of processors, hard drives, docking systems, software options, and service plans. Pricing these options is a sticky problem. Companies must decide which items to include in the base price and which to offer as options.
So, this pricing’s 2 main factors are:
- The main/base product and
- The complementary/accessory product.
Use of the Term in Sentence:
- The company is a manufacturer of printers and ink and follows optional product pricing.