Different price strategies can be utilised at different stages of the product life cycle. Some of these price strategies may include (1) penetration pricing, (2) fair/parity pricing, (3) skimming price, and (4) Cost-plus pricing. For example, penetration pricing can be used by offering really attractive prices at stage of product launch, in order to capture market share. At a later time, once the market share is stable, a company could consider cost-plus pricing, where it marks up the price based on the cost, in order to ensure profit.
Note that price could be affected by cost. When selecting a price to sell, a company should consider its costs, such as but not limited to: