Price Including Pricing Methods

Price Including Pricing Methods – cost, market, competition-based

Cost plus margin: Price determined by cost of production plus a set mark-up for profit.

Market price: Businesses sets price at level dictated by market ie supply and demand.

Competition-based: Setting a price to compare directly to competitors e.g. beat competitors by 10%.

Extract from Business Studies Stage 6 Syllabus. © 2010 Board of Studies NSW.