Pricing
If you have a business you want to make sure that you price your products and services appropriately. Your prices should be consistent with the business strategy and also linked to the cost of producing the product or service.
Two pieces or terminology to remember:
- Price makers: Set their own price
- Price takers: Have to accept what the market dictates (this can be either a competitor or a customer)
You've probably heard of supply and demand before. The basic premise here with supply and demand is that if you sell lots of a product you can afford to reduce the price per unit, and conversely if your sales are low you'll have to increase the price.
