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The blended pricing method

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 have a good understanding of these elements you may want to stick with your current pricing (if it's working for you) so you don't run the risk of having to reprice too often, which can cost you customers.




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