Post by account_disabled on Mar 13, 2024 6:16:28 GMT
The strategy for setting prices . Cost Oriented Pricing (Pricing based on a cost approach) This is the most common method used by many companies, namely by setting the selling price based on the costs incurred for production and adding a certain percentage as profit. There are three groups in determining the price of this model, namely: Cost Plus Pricing Method (Cost-Plus Pricing Method) Cost determination is often carried out by production companies. The calculation is by calculating the selling price per unit of product by adding up all costs per unit plus a certain amount as the desired profit. (Formula: Total Cost + profit = Selling price) Mark-up pricing ( Mark-Up Pricing Method.
This is a price setting that is done simply by increasing profits, this method is often used by intermediary traders because they do not have production costs. (Formula: Purchase Price + MarkUp = Selling Price) Target pricing This is pricing based on the desired level of return on investment (ROI). Also read: Understanding selling price and effective strategies . Demand-Oriented Pricing (Pricing based on Bulk Lead a needs/demand approach) According to Djaslim Saladin ( : ) Demand-Oriented Pricing is determining prices by considering the state of demand, market conditions and consumer desires. Demand-oriented pricing is based on demand behavior , for example high prices when demand is very strong and low prices when demand is weak.
To respond to various types of consumers who want a product, the usual method is to carry out price discrimination. Types of price discrimination that can be carried out, for example, are discrimination against territory, customer groups, time and product quality or form. . Competition Oriented Pricing (Pricing based on a competitive approach) Competition oriented pricing is pricing that is based on prices set by competitors, this is done especially for products that are homogeneous. Some pricing methods that can be mentioned are as follows: Perceived value pricing , namely pricing where the company tries to set prices at the same level as the industry average. Sealed bid pricing is a price setting based on bids submitted by competitors.
This is a price setting that is done simply by increasing profits, this method is often used by intermediary traders because they do not have production costs. (Formula: Purchase Price + MarkUp = Selling Price) Target pricing This is pricing based on the desired level of return on investment (ROI). Also read: Understanding selling price and effective strategies . Demand-Oriented Pricing (Pricing based on Bulk Lead a needs/demand approach) According to Djaslim Saladin ( : ) Demand-Oriented Pricing is determining prices by considering the state of demand, market conditions and consumer desires. Demand-oriented pricing is based on demand behavior , for example high prices when demand is very strong and low prices when demand is weak.
To respond to various types of consumers who want a product, the usual method is to carry out price discrimination. Types of price discrimination that can be carried out, for example, are discrimination against territory, customer groups, time and product quality or form. . Competition Oriented Pricing (Pricing based on a competitive approach) Competition oriented pricing is pricing that is based on prices set by competitors, this is done especially for products that are homogeneous. Some pricing methods that can be mentioned are as follows: Perceived value pricing , namely pricing where the company tries to set prices at the same level as the industry average. Sealed bid pricing is a price setting based on bids submitted by competitors.