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The advantages of Cost-Plus Pricing include simplicity in calculation and ensuring all costs are covered in the price, thus guaranteeing a profit margin. However, it doesn't take into account market conditions, competition, or customer's perceived value, which can lead to either overpricing or underpricing a product.
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Cost-Plus Pricing – the process of simply calculating your costs and adding a mark-up. Competitive Pricing – the process of setting a price based on what the competitors' prices. Value-based Pricing – the process of setting a price based on the customer's price expectations. Price Skimming – the process of setting a higher price and bringing it down as the market evolves. Penetration Pricing – the process of setting a lower price to enter a competitive market and rising it with time.
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Take the most advantageous pricing approach to increase profitability of your organization. Use our Pricing Strategies presentation to outline factors...
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