What are the common methods of pricing insurance goods

1, the pricing of the product depends on many factors, including:

(l) cost. The cost of product development, manufacturing, storage, raw materials, transportation, etc., directly determines product pricing.

(2) Expected profit. After the cost is determined, the company may also have a fixed percentage of expected profit such as 10%, 15%, etc.

(3) Capital turnover. The need for fast cash flow of the enterprise will have to set the price at the most attractive level to the user. And the most attractive price level, profits are not necessarily the largest.

(4) supply and demand. Market demand is strong, the product price can then float upward. A large number of products are stagnant, the price will have to go down.

(5) Competitor prices. As the flow of information becomes more and more transparent, especially on the Internet for price comparison is an easy thing, competitors' prices also largely affect the company's own pricing.

(6) Brand image. When a company or brand focuses on the high end of the market and offers the highest level of product or service, price may be largely irrelevant to cost. Lower prices may even reduce brand image and sales.

(7) Promotional strategies. The use of various forms of promotions, discounts, and combinations of offers will affect the final pricing of the product.

2, product pricing method

Combination of different pricing factors can produce different pricing method, such as:

(1) cost + expected profit. This is the most common and safest pricing method. The total cost of the product plus the profit that the company feels is appropriate is the shipping price.

(2) Competitor tracking method. In order to ensure the sale of the product, sometimes the price must be comparable to competitors. Competition when the hand to adjust the price, one must also follow the adjustment.

(3) low price to seize the market. In order to grab market share as soon as possible, or for survival, in order to speed up capital turnover, may have to use low prices, and will even sell products below cost to capture the market. In a strong follow-up sales strategy to support, low prices to capture the market is also a good pricing method.

(4) Profit maximization. Precisely calculate the price, sales, revenue, and profit figures relationship, set the price at the level of maximum profit.

(5) Value pricing. The price of a product or service has nothing to do with cost, but is calculated according to the benefits and value brought to the user, which is often subjective judgment, such as software, consulting services. In the best case, it can even be said to provide an agreed amount of money is how much money.

Extended reading: insurance how to buy, which is good, hand to teach you to avoid the insurance of these "pit"