MANAGEMENT

Detailed explanation-1: -A pricing strategy is the process and methodology used to determine prices for products and services. As we’ll explore in this article, different pricing strategies work for different products and business models. The right pricing strategy can enable several things for a business: Convey value to customers.

Detailed explanation-2: -Instead of basing prices on what the customer is willing to pay, businesses set prices by determining the cost of production and their ideal profit margin. For example, if a product costs $100 to make and a company’s target margin is 15%, then the product will sell for $115.

Detailed explanation-3: -Pricing decisions are the choices businesses make when setting prices for their products or services.