Pricing method of purchase price

Traditional pricing is generally set by suppliers, and pricing methods mainly include cost-oriented pricing, demand-oriented pricing and market-oriented pricing. There are some new pricing methods, such as life cycle cost pricing method and target cost pricing method:

1, life cycle cost pricing method;

CIMA defines the life cycle cost pricing method as making full use of specific physical assets at the lowest cost in the life cycle. The so-called "technology to make the best use of everything"

Life cycle cost: the costs related to the purchase, use, maintenance and scrapping of physical assets, including the costs of feasibility study, investigation, development, production, maintenance, renewal and scrapping, as well as the related support, training and operation costs during the asset ownership period.

2. Target cost pricing method

CIMA defines target cost method as product cost estimation derived from market competitive price, which is used to continuously improve and update new technologies and production procedures to reduce costs.

It means that the buyer first predicts the market price of the product according to the market supply and demand, and then deducts the profit he plans to get, that is, determines the target cost of the product.

In order to be more efficient, the target pricing method is best applied in the following situations: 1) customers have certain influence on the supply chain; 2) There is a loyalty relationship between suppliers similar to that between alliance enterprises; 3) Suppliers can also benefit from cost reduction.