SUSTAINABLE PRICING - VALUE VIA SUSTAINABLE PRICING STRATEGIES,SOURCES AND IMPACT OF ECO COSTSRIVASAN B215120095 INTRODUCTIONRecovering the Real Product Cost is termed as Sustainable Pricing. A sustainable price accountsfully for the economic, environmental and social costs of a product's manufacture and marketingwhile providing value for customers and a fair profit for business. Companies that have realizeda sustainable, fully integrated, world-class pricing competency can accelerate improvement inareas like including route-to-market channel optimization, key sales account planning,management and customer contract negotiations, Sales and Operations Business Planning, andproduct portfolio management. The motivation behind sustainable pricing is driven by the needfor environmental protection and prevention of damage to the environment by environmentallyconscious consumers, like true blue and LOHAS individuals, and the market for such consumers.When it comes to product placement and sales, sustainability concepts can rather be a keyproduct/price differentiator. Focusing on environmental responsibilities involves evolving to eco-friendly manufacturing methods, providing workers training, and reducing the movement of rawmaterials and products. Fig 1: The sustainable business strategy matrix. Sustainable businessstrategy is the integration of economic, environmental, and social aims into a firm's goals,activities, and planning, with the aim of creating long-term value for the firm, its stakeholders,and the wider society.PRICING STRATEGIESFirm will use strategies according to their position in the market. In the book, “Smart Pricing”the authors describe the challenges facing traditional pricing strategies. Cost-Plus Pricing receives least amount of attention. Leveraging a sustainability, the key is tocreate consumer value for the cost, emphasizing the sourcing of sustainable materials andservices and looking for energy and process efficiencies to reduce total cost. Competition-Based Pricing is a more reactive strategy seen in fierce/low profit markets. The keyin this strategy is to create consumer loyalty, leveraging sustainability as a key differentiator. Consumer-Based Pricing is the most aligned strategy with consumer engagement. In this the keyto create two-way dialog with your stakeholders to ensure sustainable expectations and offeringsare discussed.Types of pricing strategies include carbon offset pricing, competitive pricing, and product linepricing. Carbon offset pricing refers to situations under which the marketer of a product enables thepurchaser to compensate for the greenhouse gas emissions associated with consumption.Competitive pricing is a pricing strategy based on the firm s position in the market. Thesestrategies include break-even pricing, cost-based pricing, value-based pricing, status quo pricing,skimming, and penetration pricing.