Section 6
General Pricing Strategies
Book
Version 3
By Boundless
By Boundless
Boundless Marketing
Marketing
by Boundless
5 concepts
![Thumbnail](../../../../../../figures.boundless-cdn.com/14041/square/800-9263.jpeg)
Cost-Based Pricing
Cost-based pricing is the act of pricing based on what it costs a company to make a product.
![Thumbnail](../../../../../../figures.boundless-cdn.com/13337/square/price-skimming-small.jpg)
Demand-Based Pricing
Demand-based pricing is any pricing method that uses consumer demand - based on perceived value - as the central element.
![Thumbnail](../../../../../../figures.boundless-cdn.com/13423/square/5013831237-f9e739dd3f-o.jpeg)
Competitor-Based Pricing
Competition-based pricing describes a situation where a firm has a pricing policy that reflects the pricing decisions of competitors.
![Thumbnail](../../../../../../figures.boundless-cdn.com/13429/square/codecogseqn-20-30-.gif)
Markup Pricing
Markup pricing is a strategy in which a company first calculates the cost of the product, then adds a proportion of it as markup.
![Thumbnail](../../../../../../figures.boundless-cdn.com/13434/raw/profit-max-total-small.jpg)
Profit-Maximization Pricing
Profit maximization analysis is the process by which a firm determines the price and output level that returns the greatest profit.