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Unit cost +

Factors to consider in Pricing 1. Product cost (cost-based strategy) a. mark-up- it is where a standard percentage based on cost is adopted b. target profit (ROI)- prices are set towards attaining a satisfactory rate on return . 2. Target market 3. Competition. Target profit pricing formula:

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Unit cost +

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  1. Factors to consider in Pricing1. Product cost (cost-based strategy) a. mark-up- it is where a standard percentage based on cost is adopted b. target profit (ROI)- prices are set towards attaining a satisfactory rate on return.2. Target market3. Competition

  2. Target profit pricing formula: Target profit pricing= Unit cost + Target ROI x Investment Unit Sales

  3. Unit cost formula: Unit cost pricing= Over- all expenses Target sales volume (based on market segmentation) • Variable + cost

  4. Example : MangKikoy is planning to put up a water refilling station. Using the following information, compute the right price of the new product of MangKiko.

  5. Let’s try: Penshoppe Inc. is planning to sell new designs of shirt. Using the following information, compute for the price of the new product of Penshoppe.

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