Pricing Process

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 price

adjustments 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.

Article Written By manas

Pen is mightier than sword. It has always been and will be. Creative thoughts can be developed and circulated among the public to overall growth and development. Writing is the only way through which one can do the same. I have a deep inclination towards writing.

Last updated on 17-07-2016 110 0

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