2. INTRODUCTION
Secondary market is also known as after market.
Pricing is the evaluation of something in terms of its
price.
Cost based pricing method and competitive pricing
method are 2 main methods used.
3. COST BASED PRICING METHOD
In this, the general principle of charging for
products is related to the cost of providing these
products.
cost + fixed profit % = selling price
Involves the determination of all fixed and variable
costs attributes to the product.
Managers add a desired percentage of profit to it.
4. COMPETATIVE PRICING
In this, competitor’s retail or wholesale price is taken as a
benchmark to determine the price.
Price is set slightly below, above or the same as your
competitor.
It depends on your positioning strategy.
5. ADVANTAGES
It represents the individual willingness to pay for costs
and benefits of goods that are brought and sold in
markets.
Price, quantity and costs data are relatively easy to
obtain for established markets.
The method uses observed data of actual consumer
preferences.
The method uses standard, accepted economic
techniques.
6. DISADVANTAGES
The true economic value of goods or services may
not be fully reflected in market transactions.
Seasonal variation and other effects on price must
be considered.
