Cost Based Pricing Methods of Small Scale Industries of Mid-Western Region, Nepal
- Country : Nepal
- Subject : Marketing
Every production industry has their system of pricing of their goods and services. Cost based pricing is one of the pricing methods of determining the selling price of a product by the company, wherein the price of a product is determined by adding a profit element (percentage) in addition to the cost of making the product. Most of the Nepalese industries are involved in processing and manufacturing of food items, consumer and household goods, and textiles and related products, both for exports as well as the domestic market. The main aim of this study was to identify the cost based method of small scale industries of mid-western region of Nepal. The study was conducted among the 264 industries of three districts: Jumla, Banke and Dang. The findings of this study shows that majority of small scale industries had considered the markup pricing method then second highest number also considered the target return method. Comparatively very low industries had followed the break-even analysis during the price fixing. There was no significant difference between the districts regarding the cost-based method.