Complementary-product pricing
Complementary products are used together, so the price and demand of one can affect the other. Complementary-product pricing considers the combined customer relationship and profit rather than only each item’s isolated margin. A low entry-product price may be supported by profitable recurring supplies or service, but switching, compatibility, competition and customer fairness matter. Do not assume every low-price item is deliberately subsidised or that the complement’s future demand is guaranteed.
Worked example
A device is priced attractively while compatible consumables provide continuing contribution; evaluate total expected customer contribution and the risk customers switch to alternatives.
Common mistake
Products sold together are not necessarily complements, and a low hardware margin is not sufficient evidence of a profitable overall model.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | PM | Direct | September 2026–June 2027 |