What are the three basic pricing methods?

There are three basic pricing methods: cost-oriented pricing, market-oriented pricing and customer-oriented pricing.

Cost-oriented pricing method: that is, based on the purchase cost and expected profit, determine the price of the products to be sold. Cost-oriented pricing method is divided into cost-based pricing method, target income pricing method and break-even pricing method.

Demand-oriented pricing method: that is, the price is determined according to the affordability of buyers who want to buy unit products. Demand-oriented pricing methods are divided into: understanding value pricing method, demand difference pricing method and reverse pricing method.

Demand-oriented pricing method refers to the pricing method to determine the price according to the difference between market demand and consumers' feelings about products.

It includes the following three types:

(1) Cognitive-oriented pricing method is a pricing method based on consumers' subjective judgment on the value of products provided by enterprises.

(2) Reverse pricing method refers to the reverse calculation of the wholesale price of middlemen and the production price of production enterprises based on the final sales price acceptable to consumers and taking into account the costs and normal profits of middlemen.

The price can be calculated by the formula: ex-factory price = market retail price × (1-wholesale/retail difference rate )× (1-purchase and sale difference rate).

(3) Customary pricing method is based on the established customary price in the market for a long time.

Competitive bidding/competitive pricing.

Competition-oriented pricing method: that is, refer to the pricing of sellers selling similar things to determine the pricing of their own unit products. Competition-oriented pricing methods are divided into market-oriented pricing method, product differential pricing method and bidding pricing method.