What is Pricing?
Pricing is a way for a brand to communicate a product’s value to consumers. Pricing can also help sellers determine their net profit margins, demonstrating how much a business earns from their goods and services.
Increased prices can infer a higher quality product, whereas lower prices can target consumers looking for cheap products. To determine the price of a product, you must first establish your target demographic and their preferences.
Setting A Price
When selling your product or service, it is important to develop pricing objectives, to help determine what price to set for your product. During this process, you must decide what you want to communicate to consumers about the price of your product. When shopping for phones, do you look for the cheapest phone or for one that is high quality? Because different prices appeal to different consumer tastes, buyers are attracted to strategically priced products.