Market based pricing can be an approach that is appropriate for your industry/sector? But it may not be and it could be causing you to leave money on the table and not achieve the prices and margins you should be.
It can be an approach that is accepted as the right pricing approach however it may not be – it could be your customers quote market prices which are not optimum (and lower prices are always in their best interests), market prices may be based on outdated information or perceptions or your competitors are simply following each others pricing and nobody is right, it’s all guesswork.
It’s worth thinking about whether or not a market based pricing approach is the right one.