What considerations should a firm make when pricing their goods/services?

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Expert Solution

The firm should make the following considerations while pricing the goods and services:

Costs : before setting the price for the product, the manufacturer must keep in mind the direct and fixed costs involved in manufacturing the product. The cost of producing and marketing the product as well as delivering the product.
Customers: before setting up the price of the product, the manufacturer must make sure that is the product is a high end or a low end product. Weather the consumers that are being targeting, would buy the product or not and what category of product would they like to buy a expensive or a cheaply priced product
Competitors : Before fixing the price, the manufacturer must also keep a check on the competitors in the market. What prices are they offering their products in, what is their position in the market place. On the basis of these questions, they should charge an appropriate price for the products. \
Profit : A business should always charge prices for the products on the basis of the profits that they can make form it. They should not charge prices only on the basis of what others are charging. The product must add value to the business.

jeff jeffy answered 3 days ago

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