GENERAL KNOWLEDGE

Detailed explanation-1: -Pricing decisions for products and services should first be based on how much it costs you to make or how much time it costs you to do the job. After that, consider what your competitors are doing with their pricing strategy. If you’re able to offer a better rate, you could increase your sales.

Detailed explanation-2: -Profit margins generally vary by industry. But, a 10% profit margin is typically average. 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.

Detailed explanation-3: -Demand-based pricing is any pricing method that uses consumer demand, based on perceived value, as the central element.

Detailed explanation-4: -Value-based pricing is a strategy of setting prices primarily based on a consumer’s perceived value of a product or service. Value-based pricing is customer-focused, meaning companies base their pricing on how much the customer believes a product is worth.