No matter what type of product you sell, the price you charge your customers or clients will have a direct effect on the success of your business. Though pricing strategies can be complex, the basic rules of pricing are straightforward:
All prices must cover costs and profits.
The most effective way to lower prices is to lower costs.
Review prices frequently to assure that they reflect the dynamics of cost, market demand, response to the competition, and profit objectives.
Prices must be established to assure sales.