Last week, electric car company Lucid Motors — which has raised $1B+ — announced the pricing for its entry-level option: $69.9k after EV tax credits.
Naturally, Elon Musk — who priced the Tesla short shorts at $69.420 — announced a pending price cut of the Model S to $69,420.
Pricing Strategy 101
Based on this hilarious incident, we put together a definitive list of the best pricing models out there (via HubSpot Blog):
- Competition-based: Set your price on existing market rates (e.g., what your competitors charge)
- Cost-plus: Calculate the cost of your product, then add a markup
- Dynamic: Flexible pricing based on real-time supply and demand (think Uber’s surge pricing)
- High-low: Set a product at a high price with the intention of marking down shortly after
Not from HubSpot — but The Hustle’s personal favorite:
- Elon-based: Literally any numbers that contain any combination of “420” or “69” in any order or frequency
P.S. In related news, HubSpot’s CEO Brian Halligan recently joined the Trends Facebook group — BOOM!
Topics:
Money And Markets
