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Pricing economy

Price is the amount of money paid for a product. This means what the consumer considers the value of the product to be appropriate for them. The value of the product depends on the benefits obtained in relation to the monetary value. People actually buy benefits. People buy expensive products because they make sure they have a high price and are of high quality despite the high price. Ordinary consumers don’t want a cheap product available - they want the best product at the most affordable price. Price differs from the other three components of the marketing mix, with product, location, and advertising factors adding value to the customer and the cost of your business. Prices allow you to cover these costs. Although the “correct” price is actually the difference between what the market demands and the price of the product, many elements are involved in setting prices. For example, the image of your business or product will affect the price you can afford. While pricing decisions are crucial to business success, many small business owners make poor pricing decisions. It is not reasonable to fully believe in ‘constipation’, but what is happening in the market is completely dependent on what the competition is and the accounting costs that do not take into account customer demand. Three important economic factors are related to how much you pay for your products: competition, customer demand, and costs.

                                                    


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