What You Need to Know About Captive Product Pricing

Captive product pricing happens when a business such as Springfield towing company prices goods and services based on the core product – the actual functioning product, as well as additional accessories, that are necessary for the core product to work. The core product is bought once the accessories are purchased over and over again, or as it is deemed necessary. Companies will typically price core products at a loss and attempt to make up the difference by pricing the captive product at a higher price. Added value can come from being the only business that sells the additional required accessory, as this guarantees more business from customers who purchased the core product.


The good thing about captive pricing is that it can boost sales and lead to increase profit margins. Having accessories required for core product function is a sure way to inspire customer loyalty, especially if they feel like the expense is worth it. Captive pricing comes with its considerations. Deciding to use this model from being fuelled by having a natural and complementary product and accessory. You should never opt to do this if the products you have are not related, as doing so could be seen as grabbing money from your customers as that is an unethical practice. Additionally, consider pricing your products separately. Many businesses underprice core products and overprice captive products to make up for the loss. While this can be considered, they should be priced separately based on their worth.

Focus on Customers

Customers are the key deciding factor when it comes to captive pricing. You should price your products with your customers in mind, and sell with them in mind as well. Ensure the products you sell provides a lot of value to your customers. They should not be enraged because you have provided outrageous prices. For anything you do, avoid being flagged for unethical practices. For captive pricing, there are many examples we can learn from, and use these models and a basis for setting pricing for customers.

Video Games Console

A good example is video game consoles, as they provide a good example for captive product pricing. The core product is the gaming console such as Xbox. It may be nice to have this gadget but can prove worthless if it doesn’t come with its accessories. This means the captive products are the controllers, games as well as any additional accessories that make having an Xbox worth it. Creators of video game consoles are also capitalizing on any additional benefit of captive product pricing. Such companies benefit a lot from having customers purchase multiple consoles to play their favorite games that are not compatible with their favorite device.


Another good example we can look at is the car industry. For car manufacturers, they attempt to capture the market with captive product pricing. The core product is the purchase of a car, and the captive product is any replacement parts or additional accessories such as GPS tools, that are required to keep the car running or improve on user experience.

How to Hire for Your Customer Support Team

When you are starting a business such as tow truck, you want to ensure your hiring is on point and every talent you bring on board is best for business. If your business is growing, you want to ensure you work hand in hand to scale your support to ensure you can give your customers the best service. If you are in the early or mid-stage of your growth, it is important you develop a good understanding of how to scale your business in terms of support.

Who to hire for customer support

One question every business person asks is who to hire for their business. You need to make a sure guess and decision on the best person who would suit your business. Customer support teams often consist of employees with different backgrounds and each of them comes with unique skills to the team. Their specializations may greatly differ, but there would be some common characteristics that all of them would share.

If you are looking for who to hire for your customer support, here are some key things to consider.


If you work in customer support, your job will majorly involve solving problems for your customers. As long as you have to deal with customers, you can’t avoid problems facing them. You will be tasked with finding a solution to the problems your customers are facing. Successful support representatives are excellent in problem-solving. Even when they don’t know how to address a particular issue beforehand, they will always go above board to seek solutions through research.


Customer support is and will always be a reactionary function. This means the best people in customer support are quite flexible and can be adaptable to various challenges facing them. Even if two customers are facing the same problem, and adaptable support representative knows that the two cases are not the same and will work on finding different solutions to each of those problems.


We all know customer support can be quite frustrating. After all, your key job is to look for answers that may not exist. Additionally, you will work on appeasing a customer who is waiting intently fora solution. Customer support reps need to be tenacious and determined to overcome various challenges customers might be facing. If you are so easy to be put off by failures, you will find a lot of struggles in finding creative solutions to deal with customers.

When hiring for customer support teams there are different people you should bring on board. Get onboard a customer support rep as this is one of the most influential roles in the support team. These types of employees will be on your front line fielding phone calls and speaking directly with customers. You will also need to have a customer support manager who will be responsible for overseeing the entire process and supporting your team. You will also need to have a customer support specialist who has expertise in specific areas of your products and services and business.