In the going rate-pricing method, price is determined on the basis of present rates prevailing in the market. Companies may set prices high or low depending on product/services to their competitor's prices.This method of pricing is useful for products/services which show fewer variations between producers. It is also called a ... Read More

In target return pricing, price is determined based on the rate of return targeted on investment. Desired Return is also called Return on investment. This type of method is used in e-commerce.In this, selling price is determined with insights of the market department, other data and customers willing to pay. ... Read More

In the value pricing method, the price set is based on the value recognised by the customer. It is mainly a customer based pricing strategy, where price is not decided on cost of production.It is different from cost plus pricing. In cost plus pricing, price is determined based on product ... Read More

In this competition based pricing method, the price is determined based on competition in the market. Price is determined by considering competition, price sensitivity and cost.Competitive pricing strategy is the strategy used by a company to fix the price of a product by keeping the view of competitors.This can be ... Read More

In a demand based pricing method, the product price is determined by customer demand and product perceived value. In this, customer responses are considered and a suitable price is determined. Factors considered are manufacturing cost, location, market competition, quality etc.Some of the strategies are as followsPrice skimming − High price ... Read More

In Cost plus pricing method, a fixed percentage/profit margin is added to unit production cost which includes material cost, labour cost, overheads cost, manufacturing overheads etc. to get selling price.This type is more suitable, where there is no uniform production or each order is different.FormulaThe formula for cost plus pricing ... Read More

The term merger is nothing but combining the two or more companies to form a big unit and term acquisition is nothing but takeover of one company from another company. The main aim is to reduce operation costs, wealth maximizations. Mergers and acquisitions play an important role in the corporate ... Read More

Merger and acquisition is the process of joining two or more companies as one company either by combining them or by acquiring (one company purchases another company or companies) and form a larger business unit. Any transaction related to above deal is called as a Merger and acquisition deal.In merger ... Read More

The issues in merger and acquisitions are as follows −Financial issues − Buyers will do the analysis of all the financial matters of sellers. It includes past statements, financial metrics and future performances. All monthly statements, audited reports, liabilities, assets, revenue margins, etc. are analysed by the buyer.Technology and intellectual ... Read More

Goods and service tax (GST) levies a single tax rate for all goods (supply) and services (not in India) whereas sales and service tax (SST) is the multiple tax rate system.GST is the indirect and unified tax rate levied on goods (supply) and services whereas sales and service tax is ... Read More