What is target pricing?
A) Putting together your costs and then selling at break even
B) Putting together your costs and then selling at a profit
C) Develop product with the target price in mind
D) None of the options given are correct.

Question

Quizplus · Accepted Answer

Target pricing is the process of developing a product with a specific price point in mind. This involves considering the costs of production and distribution, as well as the desired profit margin, in order to arrive at a target price that will be attractive to customers while still allowing the company to make a profit. By starting with the target price and working backwards to determine the necessary costs and profit margins, companies can ensure that their products are priced competitively and are more likely to achieve success in the marketplace. The idea here is to develop products and services from the design stage and onwards with a final target price objective for a particular market.

What Is Target Pricing