pricing methods


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Related to pricing methods: Pricing objectives

pricing methods

the approaches used by firms to PRICE goods or services. Three basic pricing methods may be distinguished:
  1. a COST-BASED PRICING method which relates the price of a product to the costs involved in producing and distributing it;
  2. a DEMAND-BASED PRICING method which relates the price of a product to the intensity of total demand for it and acknowledges differences in demand intensities between subgroups of buyers;
  3. a COMPETITION-BASED PRICING method which relates the price of a product to the prices charged by rivals. In practice, firms use a combination of these methods in setting their prices. Other pricing methods include: conversion cost pricing, target pricing, variable-cost pricing, marginal-cost pricing and return on investment pricing. See PRICING OBJECTIVES, PRICING POLICY.
References in periodicals archive ?
The five pricing methods, with their numerical index, are the following:
Under the new law in Germany (effective from 1 January 2008); the application of the transfer pricing method is dependent on the availability and quality of third-party comparable data.
Profitability-Based Pricing Methods in the United States
Therefore, different pricing strategies against exchange rate volatility might keep on recurring due to the internal/external factors and pricing methods discussed above.
Although only 298 FSC's (7 percent) reported using a combination of the three administrative pricing methods (the 1.
This pricing method evolves with firm maturity and a solid belief in the value being delivered by the firm; a strategy that can bolster firm performance through more challenging times.
Our method would assign a numeric value to the various segments of the loan portfolio to be converted to a pricing factor that would be added to a pre-established loan rate based on conventional pricing methods.
This new model supports a range of pricing methods.
Short Sale Monitoring Solution watches for and evaluates short-sale resales for 90 days, enabling lenders to refine pricing methods on an ongoing basis.
The first step is a preliminary in-house review of existing intercompany transactions, contracts and pricing methods and strategies.
French law also includes a best method rule for selection of transfer pricing methods based on the preferred methodologies in the OECD guidelines, the Comparable Uncontrolled Profits, Resale Minus, and Cost Plus methods.
Most recently, Regina was the Director of Media Development at ValueClick Media, one of the first online advertising networks and an early pioneer of applying performance-based pricing methods to the ad network model.