Price Competition

In setting a price for a product the business will almost certainly want to cover its costs and make a profit as well. Businesses have to decide whether to charge:

• A low price in order to attract sales.
• An average price, this means you have to compete with rivals by other means, for example, quality, better promotions.
• A higher price can be charged if the product is considered to be better than that of the competition.

Pricing strategies are explored in greater detail in the Sales and Marketing Functional Area.