Sabina uses different pricing strategies according to the products’ life cycle. As known, the products’ life cycle in lingerie industry is short and the growth and declining stage occur in a short period of time. Therefore, Sabina uses Price skimming, which set the high price at the introduction, growth and part maturity stage. Sabina uses this strategy to take the advantage of the demand at the first half of the products’ life cycle. At the saturation point, the pricing is then changed to competitive pricing strategy, which set the middle price range to increase the demand of the existing products. However, after a certain period of time, the demand of the products will still decline and, so, Sabina then use pricing tactics such as Discounting to sell of the leftover products.
Also, The pricing strategies are also affected by the seasonal change in fashion. This is normally applied to European OEM customers because the weather in Europe countries is different to that of Thailand.