Målsättning för prissättning av avkastning

Target return pricing

Target return pricing is a pricing strategy where a company sets the price of a product based on a specific target return on investment. This approach involves calculating the desired profit margin and then determining the price that will achieve this margin.

For example, if a company wants to achieve a 20% return on investment for a product that costs $50 to produce, they would need to set the selling price at $62.50 ($50 / 0.80 = $62.50).

This pricing strategy is commonly used in industries where companies have a specific target return they want to achieve, such as luxury goods or high-end electronics.

By using target return pricing, companies can ensure that they are making a profit on their products while also meeting their financial goals.

  • Advantages of target return pricing:
  • Helps companies achieve their desired profit margins
  • Allows for greater control over pricing strategies
  • Can help companies stay competitive in the market

Overall, target return pricing can be an effective strategy for companies looking to maximize their profits and achieve their financial goals.

For more information, you can visit Wikipedia.