There is enormous potential in pricing because no other measure has a more immediate and greater effect on profitability.
But how do you determine the right price for a product?

The calculation of "costs + target profit = gross price" is hereby the most frequently used form of price fixing. The risk of giving away potential profit in doing so is fairly high though. If product demand complies with the desired sales, then you have made all the right moves ? but finding the right price is purely chance with this method.
Because: If the demand is higher than expected, the price has been too low. In the reverse case, demand that is too low means that consumers think the price exceeds the value of the product. The problem is the same in both cases though: Subsequent price increases or reductions are hardly possible.

But why not just take the manufacturing costs as a basis?
This possibility of price calculation is also not goal-oriented because enormous profits are frequently lost this way. One look at the very low manufacturing costs of metallic lacquering in the automotive industry in proportion to the comparatively high readiness to pay of the customers reveals that you would be giving away great profit potential ascertaining prices based on manufacturing costs.

So what other options are there?
Frequently the most efficient way is to check the pricing directly "with the customer". We will support you here with the ideal method for your information needs.
To do this, we use tools like "van Westendorp", "Gabor Granger" and price experiments along with conjoint measurement as instruments for indirect surveys. The price reaction of customers is derived from the analysis of preferences for alternative products and price offers. (also see "conjoint").