Section 1
Pricing Methods
Book
Version 6
By Boundless
By Boundless
Boundless Business
Business
by Boundless
4 concepts
![Thumbnail](../../../../../../figures.boundless-cdn.com/2117/square/figure-cost-based-pricing.jpeg)
Cost-Based Pricing
Cost-based pricing involves calculating the cost of the product, and then adding a percentage mark-up to determine price.
![Thumbnail](../../../../../../figures.boundless-cdn.com/2118/raw/pricepointgraph.jpg)
Demand-Based Pricing
Demand-based pricing uses consumer demand (and therefore perceived value) to set a price of a good or service.
![Thumbnail](../../../../../../figures.boundless-cdn.com/31043/square/competitive-market.jpeg)
Competition-Based Pricing
Competitive-based pricing occurs when a company sets a price for its good based on what competitors are selling a similar product for.
![Thumbnail](../../../../../../figures.boundless-cdn.com/2120/raw/cvp-tc-sales-pl-bep.jpg)
Break-Even Analysis
The break-even point (BEP) is the point where expenses and revenue intersect.