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Pricing apporaches - Coggle Diagram
Pricing apporaches
A. The cost-oriented
Price based on costs of production and marketing costs, plus a reasonable return for the efforts and risks of the company
Mark-up pricing
This is my cost, im gonna add a certain percentage to that. You add that to your cost and that will be your price.
Break-even pricing?
Why?
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To introduce your product,
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B. The demand-oriented
- based on how much customers are willing to pay*
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D. The value-oriented
Using buyers’ perceptions of value, not the seller’s costs, as the basis for setting price
You need to set a price before you set the rest ( this is gonna set your position ‘I’m a premium brand’, means that you need premium materials)
(Good-)Value pricing
become a low-cost producer without sacrificing quality, to attract a large number of value conscious customers
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