Step 5: There are various method used to the set the price. Most common is the mark up method where price is set at a desired profit level. Target return pricing method talks about setting price based on return on investment set by the company. Perceived value pricing method talks about setting price based on the perceived value in consumer price and companies ability to deliver that value. In value pricing method, companies charge lower price for high quality product from loyal customers. This method is usually seen in the super market. Auction type pricing, going rate pricing and group pricing are other pricing methods.