Pricing refers to specific tactics employed by businesses to set the price of their products or services in a way that maximizes sales, attracts customers, and achieves financial goals. These tactics can include discounts, bundling, psychological pricing, penetration pricing, and premium pricing, among others. They are often short-term actions designed to respond to market conditions, competitive pressures, or consumer behavior. Pricing can be fixed or dynamic and should ideally be informed by the perceived [[value proposition]], costs, volume, or market conditions, not just internal costs. Pricing tactics differ from a [[revenue model]] in that while pricing tactics focus on the specific methods of setting prices to influence consumer purchasing decisions and optimize sales in the short term, a revenue model is a broader framework that outlines how a business generates income over the long term through various streams such as sales, subscriptions, or licensing.