What are the common pricing methods?

1. Cost-plus pricing method Cost-plus pricing method is a cost-centered pricing method, but also the most traditional and most common pricing method. The specific practice is in accordance with the cost of the product plus a certain profit pricing, such as production companies based on production costs, commercial retailers based on the cost of goods. The advantage of this method is that the price set can ensure that all costs are compensated, the enterprise cost materials in their own hands, easy to calculate, and at the same time, in the absence of major fluctuations in costs, is conducive to price stability, and give consumers a reliable "will be seeking profit" impression. The disadvantage is that it does not reflect market demand. There are two types of cost-plus methods: full cost-plus and marginal cost-plus. 2. Competition-oriented pricing Competition-oriented pricing is a competition-centered pricing method that is based on competitors' pricing. Here is a brief introduction to several competition-oriented pricing methods: market-following pricing method, which refers to the enterprise according to the price level of enterprises in the same industry pricing; follow the pricing method, which is the enterprise with the price of the leading enterprises in the same industry as the standard for the establishment of the price of the enterprise's commodities; break-even pricing method, which is the use of the principle of balance of profit and loss to implement a kind of capital preservation pricing method. 3. Demand-oriented pricing method Demand-oriented pricing is a method of pricing enterprises centered on the needs of the consumers. Demand-oriented pricing method is a consumer demand-centered pricing method. It is not based on the cost of the product, nor is the enterprise pricing purely taking into account the competitive situation, but according to the intensity of consumer demand for goods and the degree of awareness of the value of the goods to set the price of the enterprise

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