What is pricing?

Ever ask yourself, what price actually is?

What is pricing?

Price is defined as the value which is placed on a product.

Another way to understand price is to say that it is whatever a buyer is willing to pay for a product or service. The price for a product typically out weighs the cost of a product. This is so that the manufacturer or business can make a profit. Sellers set prices using different methods.

There is cost based pricing. This methods does not take what the market or competitors are selling their products for.

Competitive pricing is another method. Pricing is set to what similar products are selling for.

There is demand pricing. This pricing model takes the market demand into account and sets the price based on how much demand exists for its products.

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