Versioning
What Is Versioning?
Versioning (otherwise called "quality segregation") is a business practice in which a company produces various models of basically similar product and afterward charges various prices for each model. Versioning a product provides the consumer with the option of purchasing a higher valued model for more money or a lower-valued model for less money. Along these lines, the business is endeavoring to draw in higher prices based on the value a customer sees.
Versioning Explained
Versioning is normally done when a product has large fixed costs of production and small variable costs. For instance, in software packages, highlights are added or removed to give various variants and price points, in light of the fact that generally talking, having various options will oblige various utilities of consumers. This thought is based on a customer's eagerness to pay. A higher readiness to pay will bring about the purchase of a higher-quality product, and a lower eagerness to pay will bring about the purchase of a lower-quality product.
Versioning can be found in a wide assortment of industries. In the consumer technology market, tablets and smartphones frequently are delivered in various variants that might highlight fluctuated tiers of data storage capacity and different options. For example, a higher-end variant of a smartphone may incorporate a higher resolution screen for playing back video as well as control highlights not found on different telephones in the product line.
Frequently, forms will incorporate a low-cost or budget model without any decorations and just essential usefulness as well as a high-end or luxury model with every one of the bells and whistles and higher quality trim, which comes at the highest price point.
Instances of Versioning
Software suites oftentimes see versioning options that allow customers to pick the elements they need to pay to access. For instance, Microsoft sells its Office Suite of programs in various renditions in-home, personal, and student varieties. The company likewise offers the software suite in various tiers for business users, with every cycle including different software titles as well as services, contingent upon the adaptation purchased.
Subscription TV suppliers, which can be cable or satellite, can likewise offer customers various forms of their services, commonly offered as packages set at various prices. As additional channels are added, the price increases, with premium channels frequently held for the more costly package offerings.
The vehicle industry applies versioning to its products too. The base model of most any vehicle can be outfitted with optional elements, for example, premium sound systems, network with internet and data services, and locally available side of the road services. The vehicle might have engine options, allowing for quicker models. Seating options can likewise increase or reduction the passenger capacity across various models.
Highlights
- Versioning includes the production of various models of a similar product, which are every then sold at various price points.
- Various models or variants of a product are most viable when there are high fixed costs yet low variables costs with which to change the product at various levels.
- Versioning is common practice in the vehicle industry as well likewise with software suites, subscription services, and food products.
