setting a price for by-products in order to make the main products price more competitive is called
In the case of services, this strategy is called two-part pricing where there is a fixed fee and a variable usage rate. (d) By-product pricing--setting a price for by-products in order to make the main productâs price more competitive.In this case, the manufacturer will seek a market for these by-products and should accept any price that covers more than the cost of storing and delivering them.b) Break-even pricing (target profit pricing): setting prices to break even on the costs of making and marketing a product or setting price to make a target profit. This method uses a break-even chart to calculate different prices where break-even volume is examined.