Pricing productsIntroduction Products and services have a price just as they have a value. Many non-profit and all profit-making organizations must also set prices. Pricing is controversial and goes by many names: Price is all around us. You pay rent for your apartment, tuition for your education. The airline, railway, taxi and bus companies charge you a/are; the local utilities call their price a rate; and the local bank charges you interest for the money you borrow ; the guest lecturer charges an honorarium to tell you about a government official who took a bribe to help a shady character steal dues collected by a trade association. Clubs or societies to which you belong may make a special assessment to pay unusual expenses. Your regular lawyer may ask for a retainer to cover her services. The 'price ' of an executive is a salary, the price of a salesperson may be a commission and the price of a worker is a wage. Finally, although economists would disagree, many of us feel that income taxes are the price we pay for the privilege of making money. In the narrowest sense, price is the amount of money charged for a product or service. More broadly, price is the sum of all the values that consumers exchange for the benefits of having or using the product or service. How are prices set? Historically, prices were usually set by buyers and sellers bargaining with each other. Sellers would ask for a higher price than they expected to get and buyers would offer less than they expected to pay. Through bargaining, they would arrive at an acceptable price. Individual buyers paid different prices for the sane products, depending on their needs and bargaining skills.
Definition of pricePricing is the amount of money charged for goods or service. Price is the sum of all values that consumers exchange for the benefits of having or using the product or service. Pricing is the only marketing mix element that produces revenue. All other
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