Some industries are known for releasing captive products. Such products have no value, and getting rid of them is expensive, which affects the price of the main product these businesses offer.
The producer seeks to find a market for their captive products and is often willing to accept any price, as long as it covers storage and shipping costs. This allows them to lower the price of the main product, making it more competitive. But this is just one of their strategies.
For example: you've probably noticed that cosmetics stores sometimes put discounted or low-priced products in one box. It is possible that such products are already running out of shelf life, but it is expensive to get rid of them. When a person has already bought what he needs, he can pay attention to these goods because of their price, and although the buyer does not really need anything else, he can still buy something from this box. Thus, this cheap product can serve as an addition to the main one.
Captive product pricing can also be a strategy designed to attract customers to buy a core product at a lower price. In such a case, the main product cannot function without the captive product, and this is the motivation for buying the by-product.
The pricing of by-products depends on your particular case and your main business strategy. In this article, we will consider several examples.