1. Various pricing methods

2. INTRODUCTION The companies resolve pricing issue by selecting a pricing method that incorporates costs,competition and demand factors. The choice of a particular method,however,depends on the pricing needs and the decision input barriers encountered by the management. The most important pricing methods are based on cost,competition and demand.

4. Pricing methods 1. COST BASED PRICING METHODS- Cost- based pricing refers to a pricing method in which some percentage of desired profit margins is added to the cost of the product to obtain the final price. two types of cost-based pricing- cost plus pricing method Target return pricing.

5. 2.DEMAND BASE PRICING- demand modified break even pricing is that method which sets the prices achieve highest profit in consideration of the amount demanded at altranative prices. 3. COMPETITION BASE METHOD- Competition-based pricing refers to a method in which an organization considers the prices of competitors’ products to set the prices of its own products. The organization may charge higher, lower, or equal prices as compared to the prices of its competitors.

6. Other Pricing Methods: Cost plus pricing Markup Pricing: Value Pricing: Target Return Pricing: Going Rate Pricing: Transfer Pricing: