BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -If you want to know how to determine pricing for a service, add together your total costs and multiply it by your desired profit margin percentage. Then, add that amount to your costs. Pro tip: Consider your costs, the market, your perceived value, and time invested to come up with a fair profit margin.

Detailed explanation-2: -In any market transaction between a seller and a buyer, the price of the good or service is determined by supply and demand in a market. Supply and demand are in turn determined by technology and the conditions under which people operate.

Detailed explanation-3: -Three important factors are whether the buyers perceive the product offers value, how many buyers there are, and how sensitive they are to changes in price. In addition to gathering data on the size of markets, companies must try to determine how price sensitive customers are.

Detailed explanation-4: -Costs: Costs influence prices because they affect supply. The lower the cost relative to the price, the greater the quantity of product the company is willing to supply. A product that is consistently priced below its cost can drain large amounts of resources from an organisation.