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Digital Product Pricing Algorithm Development

Table 1:

Pricing Approach Pricing Methods Disadvantages Advantages
Cost approach - a break-even method;- direct cost method;- the “cost plus” method. - the difficulty of calculating the exact price of high-tech products, since most of its cost is R&D;- it is does not take into account competition and the goods quality level. - establishment of an upper price limit;- ease of calculation (if there is available information of R&D costs per unit of goods.
Profitable (parametric) approach - point method;- aggregate method;- method of specific indicators. - application of the approach is advisable only if all risks are calculated;- a group of parametric methods is used not for a new product, but for a product that complements or extends the product line;- the upper price limit may not satisfy the customer. - pricing may include R&D costs for the period of effective use of a high-tech product;- allows you to take into account the expected financial income from the use of a high-tech product.
Comparative approach - a competitor-based pricing method; - method of price barriers;- method of perceived value;- demand-oriented method. - it is applicable to a high-tech product only if competitors are present on the market, that is, goods of the same parametric series. - it is a generalizing method and most accurately characterizing the product group.
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