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Is a combination of Cost-plus pricing & Market-based pricing method. This is where most companies end up after experimenting with different prices and learning how their customers think & feel about their product as well as the most they are willing to pay. This method allows companies to find a balance between covering their costs with a built in specific minimum profit margin and increasing that amount in relation to how a market leading competitor is priced. Until you ha

This pricing method is great for items that have a high perceived value to the customer and that are difficult for the customer to produce themselves or find at a discount. The thinking in this model is not to start with COGS and add on other amounts, but to start with what your competitors are charging and then either raise or lower your price based on the additional value you provide, how you want the customer to think about your product, and how you present/market the prod

Is one of the easiest and most common ways to set pricing. Start with your COGS/COSS and then add in the other costs you incur in the process of selling a product or service, then add in the amount of profit that makes the effort worthwhile. The result is your price to the customer. Price Calculation Example: COGS per unit = $2.50 + shipping to client = $1.50 + packaging = $.60 + allowance for taxes you will pay = $.40 + desired profit = $5.00 per pair. Total price to clie