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Definition

Product line pricing

Product line pricing refers to set the price steps between various products in a product line based on cost differences between the products, customer evaluations of different features, and competitors’ prices.

Companies usually develop product lines rather than single products. For example, Rossignol offers seven different collections of alpine skis of all designs and sizes, at prices that range from $150 for its junior skis, such as Fun Girl, to more than $1,100 for a pair from its Radical racing collection. It also offers lines of Nordic and backcountry skis, snowboards, and ski related apparel. In product line pricing, management must determine the price steps to set between the various products in a line.

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