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 ?
This approach can notably be used in European context, aiming on designing a better application of the described transfer pricing methods and implementing more rational transfer pricing policies.
Profitability-Based Pricing Methods in the United States
The third dimension includes export pricing methods. Six pricing methods are suggested by Cannon and Morgan (1990), target-profit, cost-plus, perceived-value, going-rate, sealed-bid, and negotiated pricing.
Regardless of the pricing method used, settlement offers for individual policies are highly dependent upon evaluation of insureds' health, whether in terms of life expectancy or in relation to standard mortality, and estimation of monthly policy cost.
In reality, this pricing method represents a form of significant spend-down of assets for the senior.
FSC's first had to select administrative or nonadministrative intercompany pricing methods (methods used to allocate receipts between the FSC and its related suppliers, discussed later in this article).
Avesta Sheffield, a joint venture between British Steel and the Swedish company, has now changed its pricing methods.
Transfer pricing methods vary in their effects on pricing flexibility, efficiency, and profitability.
The white paper also asks the taxpayer to attest to the pricing methods used at the time the tax return is prepared.
PURAs decision is disappointing, as it lacks pilot programs to test different pricing methods. While we agree that price differences between on-peak and off-peak power should be markedly different in order to help customers use power during non-peak times, PURAs decision just kicks that can down the road.
** Updated TPMs: Six other articulated transfer pricing methods for determining the arm's-length charge for intercompany services.