Pricing methods with evaluation

Question	Answer
Cost Pricing	The business bases its price on what it cost them to purchase/produce it.
Positive of cost pricing	It is an easy method to use and ensures that profits will not be affected if costs increase.
Negative of cost pricing	Customers may not appreciate it if the business constantly changes its prices
Market Pricing	The business sets sells the product for a price that people ("The market") are willing to pay. Eg real estate.
Positive of market pricing	The product is sold at its maximum price
Negative of market pricing	It is the consumer and not the business who end up setting the price.
Competition-based pricing	Prices are based on the prices charged by competitors.
Positive of competition based pricing	It allows new businesses to establish a market share.

Resource summary

	Created by Rory Coverdale almost 8 years ago