2) Competition based pricing. This will be helpful for sellers who are wanting to break through a market. If a market is highly competitive, you might want to sell your goods for a lower price to attract more customers to you. It can help you get customers but you might not be able to get as much profit due to low pricing.
3) Cost based pricing. This might be the most common where the sellers just add a certain percentage on top of what they have spent for making of the product. Including the operational costs and whatnot. This is a lot simple to calculate and preferred by most beginners.
All of this things are true and some business persons usually do it alot especially the last one which the number three because that's what must sellers does the most, whenever they bought their goods and services a place or market that's very far and requires them to spend a lot of money on transportation they usually add all the cost on the product so that they wouldn't be at lost and true considering the money they could spend they have to get it back if not it wouldn't be a profitable business. For the competitive one it should be done whenever everybody is hurrying to get customers to buy there services by selling cheaper.