3 Approaches to Pricing

Approaches to pricing can be categorized into three groups that are based on either costs, competition or customer value (Ingenbleek et al. 2003, p. 291). Cost-plus pricing Cost-plus pricing implies the determination of prices based on fixed and variable costs. While the implementation of cost-plus pricing is straightforward (Simon & Fassnacht 2009, p. 190) – e.g., […]