pricing method

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pricing method

Method a company uses to price its products. Pricing methods can be market-based and include: contribution pricing, a variable strategy with different prices charged for the same product depending on the circumstances; and competitive pricing, pricing in relation to competitors' prices. Pricing methods can also be cost-based and these include: mark-up pricing, the addition of a standard percentage increase on the direct cost price; and cost-plus pricing, where a percentage increase is added to the full cost price including an allowance for overheads and other incidentals.

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