Apple isn't just selling devices—it's crafting pricing strategies that subtly nudge you toward higher-priced models. Understanding these "price ladders" is key to making smarter, more informed buying decisions. What Is a Price Ladder? Definition and Core Concept A price ladder offers multiple versions of a product at ascending price points, capturing different levels of consumer willingness to pay. Origins of the Price Ladder Strategy The concept derives from economic theories about consumer segmentation and surplus extraction. Why Brands Love Price Ladders Revenue Optimization Price ladders allow companies to extract the maximum amount each consumer is willing to spend. Competitive Positioning A diversified ladder can make a competitor's simple product line seem limited and less appealing. Customer Choice Architecture Three to five options typically hit the "sweet spot," avoiding choice overload but still offering variety. Apple's Ma...
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