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A company business depends on several factors; pricing is one of the most important issues amongst them. It is directly related to the revenue earnings and market demand of a product. Sellers always want to make maximum profit and buyers always want to pay a low rate. So pricing always has to be determined amidst this tug-of-war.
It is really a challenging job to a company hence; company should take the pricing decision strategically on the basis of – market location, market division and economic condition of their buyers. For more leaning you may get in touch with any professional online Developing Pricing Strategies and Programs homework help.
Significance
It plays a significant role in the field of business as it determines the market demand of a product as often it can be found that demand of a product is decreases with increase of its price.
Profitability of a business is depends in the selling price of a product because profit = selling price – cost price.
Without determining proper price a company cannot run smoothly so it confirms existence of a company in a market. Now students you can understand that how important to learn these strategies.
Challenges
To determine the price of a product is quite a tough job for a company. They have to overcome the challenges like- proper costing, hard competition, recession and inflation, market demand and customer behavior. So company should behave strategically as per the situation. To explore this knowledge in detail you must click on myhomeworkhelp.com and get in touch with our best Developing Pricing Strategies and Programs assignment help team.
The important steps
To overcome all these challenges for making a correct price, company has to take few steps they are –
- To determine the pricing objective such as revenue, profit etc.
- Proper calculation of all fixed cost and variable cost.
- Doing a vigorous and random market survey to analysis competition and customer behavior and proper estimation of demand curve.
- To appoint all eligible and responsible person to conduct the procedures.
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