Pricing strategy is a key component of marketing mix. Price is usually an important factor affecting the success or failure of a transaction, and it is also the most difficult factor to determine in the marketing mix.
The goal of enterprise pricing is to promote sales and gain profits. This requires enterprises to consider not only cost compensation, but also consumers' ability to accept prices, so that the pricing strategy has the characteristics of two-way decision-making between buyers and sellers. In addition, price is the most flexible factor in the marketing mix, which can make a sensitive response to the market.
Introduction to cost-oriented pricing:
Cost-oriented pricing is a productivity-oriented pricing idea with individual capital as the enterprise and product cost as the center. Its goal is to get the highest possible profit without losing money. It usually includes cost-based pricing method, marginal cost pricing method, break-even pricing method (also called break-even pricing method) and profit target pricing method.
The disadvantage is that the price is set only from the producer's point of view, ignoring market demand and market competition, so the set price may deviate from the customer's psychological perception of product value, and may also be unfavorable for enterprises to gain competitive advantage.