ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -First and foremost, the price of a product or service must be determined by its full value. This means that the price should be based on the tangible and intangible assets that a product or service represents. Other factors that should be considered include the cost of raw materials, labor, and marketing.

Detailed explanation-2: -If you want to know how to determine pricing for a service, add together your total costs and multiply it by your desired profit margin percentage. Then, add that amount to your costs. Pro tip: Consider your costs, the market, your perceived value, and time invested to come up with a fair profit margin.

Detailed explanation-3: -There are three main pricing strategies: cost-based pricing, competitive pricing, and pricing based on customer value. Let’s briefly review each. With cost-based pricing, a business figures out its total cost to build, distribute, market, and support the product.

Detailed explanation-4: -Define the business goals your pricing should achieve. Include all costs efficiently. Understand your customers’ budget. Study your competitors’ pricing. Apply psychological tactics to pricing. Use different product pricing methods. Keep your pricing flexible. 20-Oct-2022

Detailed explanation-5: -Calculate your direct costs. Calculate your cost of goods sold or cost of sales. Calculate your break-even point. Determine your markup. Know what the market will bear. Scan the competition. Revisit your prices regularly.