CEVAP:

Companies use three major pricing strategies including value-based pricing, costbased pricing, and competition-based pricing.

In value-based pricing, customers’ value is used to charge a price for a product. Because the strategy is customer-driven, starting point is consumer. There are two types of value-based pricing: goodvalue pricing and value-added pricing. Goodvalue pricing combines higher quality with a lower price. Value-added pricing refers to differentiating products by adding valuable features that support higher prices.

Cost-based pricing includes different approaches such as cost-plus pricing or standard mark-up, break-even analysis, and target profit pricing. Cost-plus pricing approach determines the unit cost of the product firstly.

Break-even pricing is a cost-based pricing approach, too. The company determines the price to reach break-even point or target profit.

Target profit pricing offers to sell products more than break-even volume with a price level which will lead to a target profit.

Competitor-based pricing includes customary pricing, above-, at-, or below-market pricing, and lossleader pricing. In customary pricing, price is dictated by the market. In above-, at-, or below-market pricing, competitors’ prices charged for similar products are used to set prices. In loss-leader pricing, many companies intentionally set a price level below customary price.