MANAGEMENT

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.