The Cost-Plus Pricing model is based on adding a fixed dollar or percentage amount to the product’s costs. This model does not require deep market understanding and provides easy pricing. Yet, if the sales go not very well, the price needs to be decreased (and likewise, profit.) Therefore, this model should estimate the complexity of services and calculate all the included costs in order to protect a business’ revenue.
Value-Based Pricing is built upon price setting according to the perceived value by the individual customers. This means that a price meant for one customer may be different than the price offered to another.
The Rule-Based Pricing model is based on special predefined rules. It allows a retailer to connect its pricing strategy with business goals, by setting up predefined rules (scripts for price changes).