Traditional Culture Encyclopedia - Traditional culture - What is the pricing formula?
What is the pricing formula?
Pricing formula: ex-factory price of products = [(unit variable cost+unit fixed cost) /( 1- sales tax rate)]+[profit target/(estimated sales volume ×( 1- sales tax rate)]; Profit target = (unit variable cost+unit fixed cost) × estimated sales volume× cost profit rate; Ex-factory price of products = [(unit variable cost+unit fixed cost) ×( 1+ cost profit rate) ]/( 1- sales tax rate).
Market price method:
Under the market structure of monopoly competition and perfect competition, it is impossible for any enterprise to gain absolute advantage in the market by virtue of its own strength. In order to avoid the losses caused by competition, especially price competition, most enterprises adopt market-oriented pricing method, that is, keep the price of a product of the enterprise at the average market price level, and use this price to obtain the average reward.
In addition, by adopting market-oriented pricing methods, enterprises do not have to fully understand consumers' reactions to different price differences, and will not cause price fluctuations.
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