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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.