Product Pricing

The price of a product may be one of the most influential decisions that a consumer has to decide on when buying a product. Although it may not be the first thing that a customer sees (as the product is usually first), it is often the last thing a customer sees before deciding whether or not to purchase a product. First, a customer will decide if they like the product by looking at the product, the colors, the features, and benefits or extras that may come with it. After a customer decides that they like the product enough to buy it, they will look at the price and make a final decision at whether the price listed is a price that id fair, they are willing to pay, and have the ability to pay.

Much goes into the price of a product, rather than simply supply and demand (although this may play a factor). Companies go to great lengths to determine a proper price that will allow them to try and sell more of their product than their competitors. It is very important to know a competitors prices at all times and to know whether or not they may be holding a sale or discount in the future. This will allow the company to adjust their prices so that they do not overcharge and not sell as many products. Sometimes, however, a company will purposely set their prices higher in order to promote high quality. BMW, for example, typically has a higher price tag than most other car makers, such as Ford and GM. This promotes the high quality offered to the consumer, that may be willing to pay more for this car.

Price can play an important, if not final, decision in whether or not a customer buys a product. Do you think price is always an important role? Or does it sometimes not matter? How important is it for a company to scout out competitors prices and adjust as needed?