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Don’t you want to know the details of pricing? Our pricing homework help gives you opportunity to explore the topic and ensure that you get detailed understanding on it. It is important for you to understand what the meaning of pricing is and also learn about its objectives.

Difference between pricing and costing

The price is defined as the amount that customer needs to pay for any product. While paying price for anything, the price needs to be represented by value. The cost is known to be an amount that is spend by business while making product. Cost can be divided into two different elements:

  • Variable cost: It is a cost that can vary into proportion to any quantity that is done
  • Fixed cost: It is a cost that is involved in production process and does not vary related to the output

Pricing homework help make sure that you gain complete insight on the subject. Though these two different terms are quite distinctive in nature, but businesses need to consider each of them in order to analyze the cost of production. So, that it becomes easier for business to understand whether the particular product is making profit from market.

Type of pricing strategies

  1. Cost-based pricing strategies

Such pricing strategies are actually dependent on cost that involves product and services. They are:

  • Absorption pricing: It includes different variable costs and allocation of fixed costs. This can either contribute or don’t into profit markup.
  • Time and material pricing: Customers need to pay for labor and material in the form of bill that is incurred by company and this include in profit markup.
  • Cost plus pricing: While getting pricing assignment help, you will get to know that variable costs and fixed costs are included.
  1. Strategic pricing strategies

It is a strategy that would include use of product pricing that helps to position a company within market and also eliminate competitors from it.

  • Limit pricing:

It is a practice that can set up an unusually low and long term pricing so that the potential competitors can be eliminated from entering into the market.

  • Penetration pricing:

It is a strategy that would set up a price below market rate so that market share can be improved.

  • Price leadership:

Once you opt for and get the pricing homework help, it is possible to gain insight that this is a concept where company has to set up a price point which is usually adopted by competitors.

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