What are the three pricing methods?

1. Target cost pricing method. Here we make the product, find an estimated price customers are willing to pay, choose target operating profit per unit, derive total cost per unit long-term, and perform value engineering to achieve those costs. 2. Cost-plus pricing method. Add a markup to the unit cost. 3. Life-cycle product costing ALL costs during the product entire lifespan are calculated into the price. Hence, costs are calculated all the way from R&D to when product is ready to be shipped. Early-stage costs are highlighted.