The definitive list of all the different pricing models you can use

Pricing is one of the most important levers you can pull. Here is a guide on which strategy to use.

Trung T. Phan

October 20, 2020

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.

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: