What are the five pricing methods?

First, the cost-oriented pricing method

The method of setting the price based on the cost of marketing products is collectively called cost-oriented pricing method, which is the simplest and most widely used pricing method.

1, total cost pricing

Cost-based pricing sets the sales price according to the product unit cost plus a certain percentage of gross profit.

Profit target pricing method is to determine a target profit rate according to the total cost and expected sales volume of the enterprise, and take this as the pricing standard. Its calculation formula is: unit commodity price = total cost ×( 1+ target profit rate)/estimated sales volume.

2. Marginal cost pricing method

Marginal cost pricing refers to the increase of total supply cost caused by increasing unit output. Generally divided into short-term marginal cost and long-term marginal cost.

Marginal cost pricing refers to such a pricing rule that manufacturers or state-owned enterprises make prices equal to marginal costs. Marginal cost pricing method is also called marginal contribution pricing method. This method is based on variable cost. As long as the pricing is higher than the variable cost, the enterprise can get marginal income (marginal contribution) to offset the fixed cost, and the rest is profit.

3. Guaranteed price

Considering the change of cost after the change of sales volume, this method is a break-even pricing method based on the break-even principle.

The formula is: breakeven point sales = fixed cost/unit-unit variable cost, breakeven point sales = fixed cost/1- unit variable cost rate.

Second, the demand-oriented 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.

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.

Third, the competition-oriented pricing method?

Competition-oriented pricing method is to determine the price of goods by studying the production conditions, service conditions and price levels of competitors according to their own competitive strength, referring to the relationship between cost and supply and demand. A pricing method that takes the price of similar products of competitors in the market as the reference system for enterprise product pricing.

1, market-oriented pricing 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.

2. Product differential pricing method

Product differential pricing method refers to that enterprises establish different product images in the minds of consumers through different marketing efforts, and then choose the price lower or higher than that of competitors as the product price of their own enterprises according to their own characteristics. Therefore, the product differential pricing method is an offensive pricing method.

3. Sealed bidding pricing method

At home and abroad, many commodities, raw materials, complete sets of equipment and construction projects, as well as the sales of small enterprises, often use the way of bidding by the employer and the contractor to select the contractor and determine the final contract price. Generally speaking, there is only one tenderer, which is in a relative monopoly position, while there are many bidders, which are in a competitive position.

The target price is determined by the enterprises participating in the bidding under independent conditions. Among all bidders invited by the buyer, the bidder with the lowest quotation usually wins the bid, and its quotation is the contract price. This competitive pricing method is called sealed bid pricing method.