• Cost-plus pricing: You make the product, add a fixed percentage on top of the costs, and sell it for the total.
• Competitive pricing: It refers to using competitors’ pricing data as a benchmark and consciously pricing your products below theirs.
• Value-based pricing: Value-based pricing refers to setting a price based on how much the customer believes a product or service is worth. It’s an outward approach that takes your target market’s wants and needs into play.

This is a balancing act. A low price isn’t always ideal, as the product might see a healthy stream of sales without turning any profit. Similarly, when a product has a high price, a retailer may see fewer sales and “price out” more budget-conscious customers, losing market positi...