Factors Influencing Pricing
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The first step of pricing is to cover costs and consider profit. Pricing also includes costs beyond the direct cost of an item. Demand for a product depends on its utility and price, with lower prices resulting in higher demand according to the law of demand.
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- 5. The first step of pricing is that you must cover your costs and then consider a profit. Basically, the fact is that the cost of a product is more than exact cost of the item, it also includes other costs. Cost Of Product
- 6. Demand For Product The demand for the product will depend on its utility and its price. The law of demands states that lower the price higher the demand.