Questions

There are 2 popular pricing methods. One cost+ pricing and other value-based. I have always preferred the latter one.

A general rule of thumb method for cost+ pricing is that if your cost of goods is $1 then keep the pricing thrice i.e. $3. This varies from business to business. Also, you may go by calculating the fixed costs and the variable costs in your business and then mark it up with profits.

Talking about value-based pricing, it is completely based on how do you position your product/service and the value it translates on the customer's end. A great example of this would be Apple products. However, this model would be difficult to implement on commoditized products/services.


Answered 3 years ago

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