The Methods of pricing parts are explained below in the following:-
1. Market based pricing : The market based pricing is done by taking into consideration the current market situation and the competition level in the market. Usually the prices of goods and services is set according to the prevailing prices of the market and the prices set by the competitors dealing in same products and services. Some of the pricing techniques used under market based pricing method are as follow:
(a) Differential technique: The prices are set differentially in one to other locations depending upon the income levels, alternatives available, location etc.
(b) Auction technique: In auction technique prices are set by the seller at a particular level according to the market demand.
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