Captive pricing may be a pricing tactic a firm uses for two products that work only when used together. the firm sells one item at a really low price and then makes its profit on the second high-margin item.
<h2>What is Captive pricing?</h2>
Captive product pricing, for instance , may be a pricing strategy designed to attract a large number of customers to a one-time purchase of a lower-priced core (or main) product that requires accessory (or captive) products to function.
Captive pricing occurs when an adjunct product is required in order to use a core product. Products like razor blades for razors and toner cartridges for printers are classic samples of this. this is often also referred to as by-product pricing.
Captive pricing is usually used in video game consoles and games. Consoles are typically among the costlier core products, with prices starting within the hundreds of dollars.
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