Market Pricing Written by Carter McNamara, MBA, PhD, Authenticity Consulting, LLC. Copyright 1997-2008. Marketing should include pricing analysis. Several major factors influence the pricing for a product or service. Strategic goals greatly influence pricing. For example, if the business really wants to get into a new market, then it might charge lower than usual prices in order to generate more customers who buy the service. The business might consider changing pricing if the demand for its products are very high or low. Competitor pricing also has a great effect. If competitors are charging much less, then the business might do well to lower prices. Similarly, if the competitor is charging much more, then the business might consider increasing its own prices. In this pricing analysis, consider: Is your business recouping your costs (time, money, materials, etc.) to provide it? Is it affordable to customers? What about volume or other forms of discounts? What should be the new prices, if any? How do you know? Various Perspectives How Do I Set Price Levels? Pricing Products and Services Accurately How to Set Pricing various pricing models Market Price (Wikipedia)

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