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in addition to break even analysis or break even pricing determining the break even point you can also utilize fixed margin pricing as a way of determining ultimately how to price your particular products or services and there are two different types of fixed margin pricing uh we have first what we call cost-based pricing and we also have what we refer to as demand based pricing and know these are two separate things and they accomplish uh really the same thing ultimately our goal is to price our products in a way that allows us to be profitable uh but they achieve those by a different means of course uh with cost-based pricing typically what weamp;#39;re trying to do uh is first we need to determine what our costs are determining what does it take us to produce product XYZ uh and this generally encompasses your variable costs which of course vary with the production of the product or service you would want to consider fixed costs to an extent because you do incur those although they
