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Q. Explain the different methods for identifying fair?
i. Competition based pricing: In this method, a product's price is set based on the competitor's price for the same product.
ii. Pricing based on historic prices: In this method, the price is set based on the prices present in the existing contract or the prices set in the past for the same product.
iii. Pricing based on published catalogue or market price: This method involves comparing the published catalogue or market prices of products.
iv. Pricing based on parametric estimates: This method uses the statistical relationship between historical data and other variables to establish a price for products.
v. Pricing based on independent in-house estimates: This method involves comparing the price with the price of similar products in the market.
vi. Pricing based on market research for same or similar products: This method involves comparing the price with the price of similar products in the market.
vii. Pricing based on negotiations: This method is a common approach to pricing.
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