Pricing process for any organisation is not a easy task. While undertaking such an task, a complex of factors and considerations have to be taken. Following are being effected by way of pricing .Determining a target group, decision about the firm's image, selection of sales strategy, choice of a pricing policy, choosing a pricing strategy, setting specific prices. Pricing considerations are impact of price and output on revenue and cost, elasticity of demand and revenue, incremental contribution of output to overhead and profit.
Output level which contribute maximum towards overheads and profit. Possibilities of priceadjustments to changes in cost and demand conditions. Looking of good will. Impact of price change in a product on the product line. Finding out long run implication vs. short run implications of any price change. lLooking of rivals price strategies and reactions. Impact of price changes on entry of new rivals. Coordination of pricing policy with other policies of the firm and finally the coordination of pricing policy with overall corporate goals.