What the Market Will Bear (WTMWB)

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This pricing strategy is the most beneficial for businesses as it allows them to charge the maximum price for what the market allows. For example, if your cost is $50 and the maximum a customer can pay is $300, you can price your product at $300.

This is quite profitable, but remember that it is an open market, and any competitor can easily undercut your prices, so you will have to price accordingly.

8. Gross Profit Margin target (GPMT)
This can be a great pricing method for your business if you have diverse croatia phone number list product classes. This technique makes it easy to maintain a specific margin across every product category. The gross profit margin is the percentage of sales revenue remaining after deducting the cost of sales and manufacturing.

You can use this formula to calculate the gross profit margin.

Gross Profit Margin = Gross Profit/Revenue

9. Most Significant Digit Pricing
It is also called psychological pricing because you use psychological tricks to make your customers perceive your product as more or less valuable. For example, customers are more likely to purchase when it is $9.99 because our brains tell us that it is less than $10.00. It’s a bargain.