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Showing posts with the label competitive based pricing strategy

Essential Pricing Strategies

Organizations seek to maximize profits as much as possible but face issues related to cost, value, and competition. To project whether a business or product line will be successful requires the ability to make accurate estimates of cost and profit. The more accurately a company is able to narrow down the variable factors in the environment the more likely they will succeed in their long-term objectives. Having a cost strategy is a common way to estimate the perceived value of products and services to customers.  The Cost Method, Customer-Based Pricing Method, and the Competition-Based Pricing Method are three viable pricing strategies. There are numerous other ways in which to find the comparative value of a product but these three represent basic categorical methods. Each has their own particular methodology and approach based upon their general focus. Ultimately, the key is to ensure that the price reflects a value others are willing to pay and still allow a firm to make a re