Similarly, employment recruiters are typically paid a percentage of a recruit's first-year salary. Talent agents are also paid a percentage of the fee they arrange for a client. This technique has you offer new customers a discounted price or introductory terms to use your product or service on a trial basis. Companies that use this strategy include magazines, which may offer one issue for free, and banks, which may offer free checking for the first year. This strategy means that you sell initial product or service at a very low price, then realize a high margin on the consumable product or service that is linked to the initial sale.
Similar relationships exist between toothbrushes and toothpaste and soap containers and refills.
These are just a few of the many choices to consider when selecting the best strategies for pricing your products and services. An additional step you can take is to pay attention to how different strategies affect your purchases, whether business or personal. Ask yourself how the approaches you encounter might apply to your company's pricing strategies. Whenever possible, try to differentiate your product or service from others. The challenge here is to quantify the added value in your service so that customers know what they are paying for.