What Is Captive Product Pricing? [Answered]
Captive product pricing is the pricing of products that have both a “core product” and a number of “accessory products.” It’s a pricing strategy that takes advantage of a product that will be used primarily to attract a large volume of customers.
HubSpot contributor Flori Needle has published an article explaining the concept of captive product pricing.
She says, “Captive product pricing is a popular pricing strategy. Unlike optimal product pricing where the accessory is an optional purchase, the captive product pricing strategy requires the accessory for the core product to function.
Let’s go over some examples of products and services that use the captive product pricing model you may have encountered before.
Video Game Consoles
Video game consoles are typical examples of captive product pricing. The core product is the gaming console, like an Xbox, that may be nice to have but worthless without the accessories. So, the captive products are controllers, games, and any additional accessories that make having an Xbox worth it.”
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