Pricing Strategies

The importance of a business manager to understand pricing and its effects is vital to the firm’s ability to make profit.

Price is the monetary value of a product or service in the marketplace. It is also a signal of a product or service’s value to an individual.

However, for most products and services there is an acceptable price range. This price range is the area between the price ceiling defined by the market and the price floor established by your firm’s cost structure.

From a manager’s view point there are a myriad of factors which determine pricing. It is the ability to understand these factors and price accordingly which will lead to business profits.

This section is designed to assist you in pricing according to your business

1. Influences on pricing
   • The customer
   • The competition
2. Effective pricing tecniques
   • Introducing a new product
   • Pricing by the Retailer
   • Pricing by Manufacturer
   • Pricing by Service Firms