Product pricing is one of the most important element of the marketing mix.Pricing mainly depends upon various cost factors.Some of them are

1. Labour cost : This includes the cost per unit time of labour along with the fringe benefits that is given to the labour 
2. Materials cost: This includes the cost of the materials used in the production process.It is mainly the cost of the raw materials that   go into the product     
3. Overhead cost: It is the cost involved in running a business. Overhead costs are divided into 2 mainly:
a. Fixed costs-Rent,insurance,depreciation,subscriptions etc                                          
b. Variable costs-Fluctuating and seasonal costs.

Based upon these cost factors the different pricing strategies can be mainly divided into Manufacturers suggested retail price. Here the price is the price of a product that the manufacturer reccomends to the seller.This is mainly done for standardisation purposes Price bundling. Under this strategy many different goods and services are sold under a single price Multiple pricing. Here several units of the same item is sold for a single price.Sometimes retailers sell 2kg of rice for the price of 1Kg rice. Competetive pricing.

Under this strategy of pricing the product is given the same price as that of similar products by competitors.Now this cannot be used by companies in the service sector as we know that it is very difficult to compare the quality of services unlike tangible goods Pricing above competition. Pricing above competition means you are pricing the price of the product above that of your competitors product but then you are bound to provide the customers with some added benefits Pricing Below competition. This type of pricing is found in markets were people are very much price sensitive.They give more importance to the price of the product than its quality.Here the product is priced lower that its competitor.