From Wikipedia - http://en.wikipedia.org/wiki/PricingA well chosen price should do three things:
1. Achieve the financial goals of the firm (eg.: profitability)
2. It the realities of the marketplace (will customers buy at that price?)
3. Support a products positioning and be consistent with the other variables in the marketing mix.
Price is influenced by the type of distribution channel used, the type of promotions used, and the quality of the product. Price will usually need to be relatively high if manufacturing is expensive, distribution is exclusive, and the product is supported by extensive advertising and promotional campaigns. A low price can be a viable substitute for product quality, effective promotions, or an energetic selling effort by distributors. From the marketers point of view, an efficient price is a price that is very close to the maximum that customers are prepared to pay. In economic terms, it is a price that shifts most of the consumer surplus to the producer.
The effective price is the price the company receives after accounting for discounts, promotions, and other incentives.
English vocabulary used to talk about economics and business.
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You have to set a price for your product.
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1.This sentence means that use this book, and this book is for pricing new autos and trucks, car reviews and free car quotes from local dealers.Use NADA Guides for pricing new autos and trucks, car reviews and free car quotes from local dealers
2.Pricing-- the evaluation of something in terms of its price
rating, valuation, evaluation - an appraisal of the value of something; "he set a high valuation on friendship"
price gouging - pricing above the market when no alternative retailer is available
1.This sentence means that this pricing inculses that 3 months of free support from date of purchase, 3 months of upgrade protection and 1 year of anti-spam updates.Pricing includes 3 months of free support from date of purchase, 3 months of upgrade protection and 1 year of anti-spam updates.