Monday, 23 March 2020

Product Pricing Methods

Pricing Methods:
Pricing method can be seen as the process of ascertaining the value of a product or service at which the manufacturer is willing to sell it in the market. The cost, market competition and demand are the three significant factors which influence a product’s price.
Pricing of products or services is a crucial decision-making strategy of the firm. Since it has a long-lasting impact over the business and its existence. Hence, a suitable pricing method needs to be adopted for this purpose.
Below are list of various Pricing Methods Techniques:
  1. Cost-Oriented Methods
    • Cost Plus Pricing
    • Mark-up Pricing
    • Marginal Cost Pricing
    • Target Return Pricing
    • Break-Even Pricing
    • Early Cash Recovery Pricing
  2. Market Oriented Methods
    • Going Rate Method
    • Sealed Bid Pricing Method
    • Customer-Oriented Method
  3. Other Pricing Methods
    • Market Skimming Pricing
    • Limit Pricing
    • Peak Load Pricing
    • Bundle Pricing
    • Psychological Pricing
    • Internet Pricing Models

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