What are the so-called product pricing strategies in traditional marketing?

Using cost-based pricing to determine a reasonable cost profit rate is a key issue, and the determination of cost profit rate must consider many factors such as market environment and industry characteristics. When a product of an industry is sold at the same price in a specific market, enterprises with low costs can gain higher profit margins and have more room for manoeuvre in price competition. When calculating the price with cost additive process, the cost is determined on the assumption that the sales volume reaches a certain level. Therefore, if there are difficulties in product sales, it is difficult to achieve the expected profit, and even cost compensation becomes unrealistic. However, this method also has some advantages: first, it simplifies the pricing work and is convenient for enterprises to conduct economic accounting. Secondly, if all enterprises in an industry adopt this pricing method, their prices will tend to be similar, so that price competition will be minimized. Thirdly, the price set on the basis of cost plus is fair to both buyers and sellers, and the seller can get normal profits, and the buyer will not feel extra exploitation. Cost valuation is widely used in leasing industry, construction industry, service industry, scientific research project investment and wholesale and retail enterprises. Even if this method is not used for pricing, many enterprises take the price set by this method as the reference price. Target income pricing method, also known as investment rate pricing method, determines the price according to the total investment, expected sales volume and payback period of the enterprise.