3. Importance for Business
• Depending on the target buyers, if the price of the product
is too high, the product will not be sold. If the product is
priced too low, not enough profit can be gained to
maintain the business.
• Price of the product affects the growth of the business.
4. Strategies of making profit
• There are two strategies of making profit in terms of the
pricing of product.
• If the seller was to set the price of the product low , then
customers would be willing to buy from the shop as
compared to others
5.
6. Case example – how to sell
• Selling a pen
• A company would either make the price very high or low
depending on the strategy they are using.
• Selling low would make it cheap where they would
increase price when demand increases – longer time to
make profit
• Selling the pen at a higher price would satisfy the
demands of some customers as some people think that
they are getting a product that have the equivalent quality
to their cost.
