according to the different price influencing factors, the pricing of financial products can be divided into cost-oriented, demand-oriented, competition-oriented, customer-oriented and other pricing methods. 1. Cost-oriented This pricing method mainly takes cost as the pricing basis. This is because the cost needs to be compensated in the sales of products. Therefore, this kind of method first needs the enterprise to make a reasonable estimate of the cost. But in many cases, it is difficult for financial enterprises to estimate the cost. Therefore, this method has some limitations. 1) Cost additive process cost additive process is the most basic pricing method. Financial enterprises set prices on the basis of full cost (direct cost plus indirect cost) plus a certain percentage of profits. This method focuses on the recovery of costs and the acquisition of profits. Its calculation formula is: total product price = (direct and indirect) cost+unit price of additional products = (cost+addition)/expected sales volume. cost-based pricing does not consider the value of the product itself, competitors and market conditions, etc. It assumes that the price set by the enterprise can accurately generate the expected sales volume. From cost-based pricing, the loan price can be calculated by the following formula: loan interest rate = capital cost+non-capital cost+risk cost+cost plus non-capital cost, namely handling fee, commission cost, labor cost and management cost. When an enterprise lends money to others, it will bear certain risks, so it is necessary to add risk costs, such as credit risk. Credit risk is the possibility that the borrower fails to repay the debt in time and in full for various reasons and defaults. In the event of default, the creditor will bear the financial loss because he fails to get the expected income. For this possible loss, creditors will charge a certain fee as compensation. In addition, the risk cost varies from customer to customer. Some customers have higher risk costs, so the corresponding loan interest rate will also increase. Using the cost additive process to calculate the loan price requires enterprises to be able to calculate the cost on the one hand, and fully evaluate the risk of the loan to determine the risk cost on the other hand. The advantage of cost-based pricing is that financial enterprises must be clear about the costs of their various businesses, which is conducive to financial enterprises to better control costs and improve their competitiveness; However, its disadvantage is that it only ignores the influence of demand and competition from the perspective of the enterprise itself. Nevertheless, because the pricing method is simple and convenient, the cost additive process is still widely used. 2) breakeven pricing method breakeven pricing method is also called break-even pricing method, equilibrium analysis pricing method or break-even pricing method, which means that the price of financial products must reach a certain level in order to break even and break even. The established sales volume is called break-even point, and if the price is lower than this limit, it will lose money; If the price is higher than this limit, it will be profitable, that is, sales revenue = total cost sales revenue = estimated sales volume × total price cost = variable cost × sales volume+fixed cost. In order to make the enterprise break even, the price should be: price = variable cost+fixed cost/sales volume breakeven point is the intersection of sales revenue line and total cost line, as shown in Figure 2. Of course, enterprises not only want to break even, but also want to achieve profits. Therefore, enterprises can include profit target in the price, and the following formula can be obtained: price = variable cost+(fixed cost+profit target)/sales volume. This pricing method of adding target income to cost is called profit target method. Compared with the cost additive process, their formulas are almost the same. Neither of them considers the factors of demand and competition. In addition, although the cost additive process method, like the target income method, requires or assumes that the enterprise can achieve a set sales volume at a certain price, the two methods pay different attention to it. The target income method focuses on completing the expected sales volume at the established price and reaching profit target; And the cost additive process is concerned with the cost recovered and the bonus obtained by completing the expected sales volume at a given price. 2. Demand-oriented demand-oriented pricing refers to the fact that enterprises are no longer based on cost, but on the intensity of customer demand. The pricing methods based on customer demand intensity mainly include reverse pricing method. Reverse pricing method is a method to determine the price of products according to market demand. Because the pricing procedure of this method is contrary to the general cost pricing method, it is called reverse pricing method. Enterprises using reverse pricing method first determine the retail price acceptable to customers through price prediction, trial sale and evaluation, and then deduce the pricing methods of wholesale price and ex-factory price according to the market demand of products. Reverse pricing method means that when the market demand intensity increases, enterprises can raise prices appropriately; When the intensity of market demand decreases, enterprises can appropriately reduce prices. The key to adopting reverse pricing method is how to correctly determine the acceptable sales price level in the market. There are three methods to evaluate this price: subjective evaluation, objective evaluation and trial sale evaluation (see Figure 3). 3. Competition-oriented In a highly competitive market, enterprises can determine the price of products by studying the production conditions, service conditions, price levels and other factors of competitors, referring to the cost and supply and demand, and according to their own competitive strength. This pricing method, which focuses on competitors' prices, is commonly called competition-oriented pricing method. Competition-oriented pricing methods mainly include: market-based pricing method and differential pricing method. 1) On-the-spot pricing method The on-the-spot pricing method is also called the prevailing price method. Enterprises adopting this method mainly set prices according to the prices of similar products in the market. The market-based pricing method is suitable for the following situations: it is difficult for enterprises to estimate the cost; Competitors are uncertain; Product differences are small and homogenization is serious; The market competition is fierce and the elasticity of product demand is small; Enterprises hope to get a fair reward and are unwilling to disrupt the existing normal order of the market. The advantages of the market-based pricing method are as follows: ① it is a relatively safe pricing method; (2) This pricing method avoids the loss of sales due to high product price and the loss of profit due to low price, so it can bring moderate profits to enterprises; (3) This method avoids the price war among peers; ④ This method is applicable to the pricing of any product. Of course, the market-based pricing method also has certain defects. If competitors suddenly reduce the price of their products, the sales of enterprises' products will be in trouble immediately. In addition, long-term follow-up to market prices is not conducive to the cultivation of financial enterprises' own pricing ability. 2) Differential pricing is a more defensive pricing method, which avoids price competition and abandons the "sharp weapon" of price competition. The differential pricing rule is an offensive pricing method. Differential pricing means different pricing for the same product. Enterprises adopting differential pricing method need to set the price lower or higher than that of competitors as the price of the product according to their own characteristics. However, not all enterprises can use the differential pricing method. The application of differential pricing method must meet the following conditions: the market must be subdivided, and each market segment shows different levels of demand. Each market segment must be separated from each other. In a high-priced market segment, competitors cannot compete at a price lower than that of the enterprise. The cost of segmenting and controlling the market must not exceed the extra income from implementing differential pricing. Differential pricing will not cause customers' disgust and dissatisfaction. The implementation of differential pricing strategy should not be illegal. There are three levels of differential pricing. In the first-level differential pricing, enterprises charge different prices for each customer. In the two-level differential pricing, enterprises will charge different prices according to the size of customer demand. In the three-level differential pricing, enterprises charge different prices for different customer groups through market segmentation. Differential pricing can be divided into customer segmentation pricing, product form pricing, image pricing, location pricing, time pricing and channel pricing. (1) Customer segmentation pricing. Enterprises sell the same commodity or service to different customers at different prices. For example, bus fares for students tend to be lower. Differential pricing according to customer segmentation does not belong to competition-oriented pricing, and differential pricing under this segmentation strictly belongs to customer-oriented pricing. (2) Differential pricing of product forms. Enterprises set different prices according to different models and styles of products, although the difference between the prices of different models is disproportionate to the difference between the costs. For example, if a piece costs 5 yuan, selling clothes from 7 yuan and embroidering a flower can increase the price to 1 yuan, while the additional cost of embroidery is only 5 yuan. For example, ICBC provides two remittance methods: one is remittance by Linksys, and the handling fee is 1% of the remittance amount. The lowest remittance handling fee is 1 yuan and the highest is 5 yuan; Second, peony card remittance, there is no remittance formalities. (3) Image differential pricing. The image differentiation of products will help to set different prices according to different images. By shaping different images, enterprises will avoid making customers feel that there is no difference in the essence of goods in different market segments. Using different packaging or trademarks can help products to achieve image differentiation, such as pouring white wine into an ordinary bottle and selling it for 5 yuan; If the same liquor is poured into a beautifully packaged bottle and given a different name, brand and image, the price of this bottle of liquor may be as high as that of 2 yuan. (4) Location differential pricing. Enterprises set different prices for products and services in different locations or locations, even if the cost of products or services in each location is the same. For example, the cost of different seats in the theater is the same, but different prices are charged according to different seats. (5) Time differential pricing. Prices vary with seasons, dates and even hours. For example, some travel agencies launch low-cost routes in the off-season, while telecom companies may set night telephone charges only half of those in the daytime. Such pricing can make the distribution of consumer demand tend to be even and avoid the idle or overloaded operation of enterprise resources. (6) Channel differential pricing. Channel differential pricing, on the one hand, may be that the channel makes the enterprise pay less, on the other hand, it may be that the enterprise wants to enhance the sales volume of a certain channel. For example, the collection of remittance fees from a certain bank. If you choose express remittance, the lowest handling fee is 5 yuan, which exceeds 1 yuan, and the fee is .5%, which is suitable for remittance within 1, yuan. In case of electronic remittance, the minimum handling fee is 1 yuan, and the remittance handling fee is L% of the remittance amount, and the maximum is 5 yuan, which is suitable for remittance amount above 1, yuan. If the customer goes through online banking, 5 yuan will be charged for each remittance, and 1 yuan will be charged for inter-bank remittance. The preparations for realizing differential pricing are as follows: First, customer information survey. Collect relevant information of customers by means of questionnaire, telephone interview and direct observation. The contents collected include: first, the basic information of customer groups. Basic information includes age composition, gender composition, occupation composition, education composition and regional composition. Second, the behavior patterns of customers, such as customers' consumption habits, lifestyles, hobbies, consumption preferences, etc. Third, the income of customers. The level of customers' income determines their purchasing power and affects the size of the market. Knowing this information is helpful for us to choose the standard of customer segmentation. Especially the mastery of customer income level and product price tolerance. On the one hand, grasping customer information will facilitate financial institutions to prepare for the implementation of differential pricing strategy; On the other hand, it helps financial institutions to understand the price sensitivity and demand price elasticity of customers. Second, the market survey. First of all, we should study the supply and demand situation of the market and the future development trend; Secondly, it is necessary to analyze the degree, scope and changing trend of market competition, such as judging whether the market structure of the product is a perfect competition market, a complete monopoly market, a monopoly competition market and a monopoly oligopoly market. Finally, enterprises need to analyze competitors, mainly including the characteristics of competitors' technology, capital, talents and cost, the speed and range of price changes, and competitors' product strategies, channel strategies, promotion strategies and market expansion strategies. Third, enterprise product analysis. The analysis of the products of this enterprise mainly includes the level of product homogeneity, whether there are substitutes and the life cycle stage of the products. If an enterprise has certain advantages in technology, capital, talents or cost in a product, and the product is different and lacks substitutes, then the differential pricing strategy is the first choice for the product. 4. Customer orientation 1) Cognitive value pricing method The method of pricing by using customers' understanding of product value is called cognitive value pricing method. Cognitive value pricing method is a customer-oriented pricing method. Cognitive value pricing method holds that customers will judge the price of products according to their level of knowledge, feeling or understanding of products. When the price level of the product is roughly the same as or lower than the customer's understanding and understanding of the product value, the customer will easily accept this product; On the other hand, customers will not accept this product, and it will be difficult for the product to sell. At this point, the key to pricing is no longer the cost of the product but the customer's subjective cognition of the product. Because customers' perception of product value is influenced by many factors, such as shopping experience, understanding of market conditions and similar products, enterprises can use many ways to influence or even change customers' perception of product value. The cognitive value pricing method needs to compare the expected profit with the profit target of the enterprise. If the expected profit is less than that of profit target, enterprises need to consider how to change customers' current value perception of products. Therefore, on the one hand, enterprises need to estimate the current customer cognitive value of products, on the other hand, enterprises need to estimate and measure the cognitive value that new measures taken by enterprises will establish in the target market. Figure 8-4 compares the steps of three pricing methods: cost additive process, break-even method and cognitive value method. 2) Differential pricing method (based on customer segmentation) Differential pricing is based on the price structure built by enterprises to meet the needs of different customers. The difference of customer demand is embodied in the fact that customers pay different attention to all aspects of products. Some customers attach importance to the price of the product, some customers attach importance to the brand and reputation of the enterprise that provides the product, and some customers attach importance to the professional risk control ability of the product provider. For price-sensitive customers, enterprises should provide streamlined services while keeping prices low. For customers who value brand and reputation, an enterprise with brand and reputation can set a relatively high price, and the price itself will enhance the confidence of such customers in the enterprise. For customers who value professional ability, enterprises need to establish good relations with them, and can set prices according to the amount of technical and intellectual investment. 3) Relationship pricing method Relationship pricing method is a pricing method that helps to form a lasting cooperative relationship with customers. This method mainly determines the price of products according to the relationship between enterprises and customers. There are two main ways to help enterprises establish relations with customers by price: one is long-term contract, and the other is more preferential purchase. One of the characteristics of financial products is to help enterprises establish long-term relationships with customers. The establishment of the relationship is beneficial to both sides of the transaction. For financial enterprises, enterprises can reduce the cost of credit evaluation for customers and the risk of intentional default by customers; For customers, because financial enterprises will regard every purchase behavior of customers as a part of their relationship, they will also consider providing customers with more competitive prices. (1) Long-term contracts. Financial enterprises can use long-term contracts to bring the two sides into a long-term relationship, or strengthen the existing relationship between enterprises and customers through long-term contracts. Generally, enterprises will give a more favorable price in long-term contracts.