If you are planning to build a business or even if you are just a consumer, I believe you should be aware of
pricing strategies used by most sellers. If you want to build a business this can help you dictate a pricing point for your goods or services and as a consumer this might help you be more responsible in buying.
1) Value based pricing. Basically a product is priced based on the percepted value of the product by the people. This allows for more profit since sellers can offer higher prices. Higher percepted value means maybe the business is credible and has some associated value to it for example Apple products. You can argue they can be a bit cheaper purpose wise but since they are a big name, they can afford to price massively.
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.
The location of your business is also a factor in pricing your product.
Value based pricing is good if the location of your business is at some cities where many rich people are passing there everyday. They wouldn't matter if your product is a bit pricey since their life status can still afford it.
Competition based pricing is if there is many similar business around your location, having lower prices than others can attract more customers to try your product. To become profitable in this type of pricing, you need to have more volume of sales.
Lastly,
cost based pricing is best if your target market is just common people like students or minimum wage workers. Customers here are good with product that is not fancy, what their after is worth fir their money.