A pricing strategy considers factors like competitor actions, market conditions, consumer trends, and other variable costs to account for the pricing model of the goods. Businesses must decide on a pricing strategy before advertising products to customers. For me the cost plus pricing is the best. Cost-plus pricing is a basic strategy that works by considering the total cost of making a product and adding a markup to that to determine the price of a product. A business owner needs to first understand the costs involved in production: material, labor, warehousing, machinery, utilities and such. The markup price that is added to the top of production cost is what the producer makes in profit.
