Price estimation based on business model pricing strategy and fuzzy logic

Abstract

Pricing, as one of the most important aspects of a business, should be taken seriously. Whatever affects a company's pricing system tends to affect its profits and losses as wall. Currently, many manufacturing companies fix product prices manually by member of an organization's management team. However, due to the imperfect nature of humans, an extremely low or high price may be fixed, which is detrimental to the company in either case. This paper proposes the developement of a fuzzy-based price expert system (Expert Fuzzy Price (EFP)) for manufacturing companies. This system will be able to recommend appropriate prices for products in manufacturing companies based on four major pricing strategic goals, namely : Product Demand, Price Skimming, Competition Price, and Target population.