Pricing Strategy

There are four common pricing strategies to consider when deciding on a price of a product:

Cost-Based, the price is set by the cost of making the product and the profit seeking.
                      Profit = Cost - Price

Psychological, the price is set based on the perceived prestige value of a product.
                         Apple iPhone is price high due to the prestige value to the consumer

Competition, the price is set based on the price of similar products sold by the competition
                       Competition product X = your product X

Demand-Based, the price is set by the demand for the product
                            if the demand is high the price is higher, if the demand is low the price is lower

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If you like to learn more about different pricing strategy please visit the link below,

Other pricing strategies