ENTREPRENEURSHIP

Detailed explanation-1: -There are three main pricing strategies: cost-based pricing, competitive pricing, and pricing based on customer value. Let’s briefly review each. With cost-based pricing, a business figures out its total cost to build, distribute, market, and support the product.

Detailed explanation-2: -A price ceiling is the mandated maximum amount a seller is allowed to charge for a product or service. Usually set by law, price ceilings are typically applied to staples such as food and energy products when such goods become unaffordable to regular consumers. A price ceiling is essentially a type of price control.

Detailed explanation-3: -Know the market. Before you can think about putting a price on something, you’ll need to understand how much your customers are willing to pay. Calculate your costs. It’s good to know the market and understand what your competitors are doing. Add in your profit.