The price setting method at the point where the business will earn zero profits after sale is considered to be the break even pricing. The main aim of the particular pricing method is to decrease the prices and apply this marketing tool for gaining a substantial amount of market share.
Definition of Break Even Pricing
The breakeven price can be defined as:
- The particular amount of the money for which the assets can be sold for covering only the costs of acquiring it.
- In the trading options, the break even pricing is that stock price at which the investors will not lose by exercising the stock.
- The specific amount of money at which the products can be sold at no profit and no loss.