What is pricing?

What is pricing?

Price is one variable that a company can change overnight. There are three important components we need to distinguish in this process. 1: The amount of product cost to be produced 2: The price customers pay to buy the product and 3: The value they acquire from the product. Pricing must be coherent with the competitors strategy. Sometimes it's tempting to adjust prices to stimulate short term goals and get better profits but it has to be traded with caution.