You own a stationery shop, and you’ve been struggling with pricing decisions. You acquire some items in your store and find those are easier to price because you can add a markup to the cost you pay. However, you also create your own products and find that you can easily sink a large investment in materials and time into each product line. How might you best set prices on the items that you produce?

 
 
 
 
 
 

By using market price data, the target-cost pricing strategy would allow you to determine the how much your products can cost.