The importance of pricing

• It defines the value of the product in terms of production costs and consumer use
• It is a tangible price point that lets customers know whether the product will be worth their time and investment
• The pricing process needs to consider flexibility/ discount/ territory/ life cycle status/ allowance
• The price of a product can influence the consumers' attitude towards the product or brand
• Pricing too high may have a negative impact/ decrease in sales
• If the price is too low, consumers may perceive the product as being of poor quality
• The price of a product must have provision for transport costs
• The price of a product should take VAT into account