Market-Based Pricing

Market-based pricing is a strategy where the price of a product or service is determined by comparing it to similar offerings in the market. Instead of setting a price based solely on costs or desired profit margins, businesses look at what competitors charge and what customers are willing to pay. This approach helps ensure that prices are competitive and aligned with market demand, allowing companies to attract customers while maximizing revenue. Essentially, it’s about finding the right balance between profitability and market conditions.