In your business, what is your pricing strategy and why?

According to me, A business can use a variety of pricing strategies when selling a product or service. The price can be set to maximize profitability for each unit sold or from the market overall. It can be used to defend an existing market from new entrants, to increase market share within a market or to enter a new market.

As we know the Price is the most important Mix of the P´s strategy. 

Several key factors will influence the price decision; since the production costs, the legal environment, the search, the competitors price, the range of the product, channel costs/distribution... and so on. Fixed and variable costs should be considered for the price construction

 Mostly is the price that will put the product in the correct/desired range of the positioning.

Mainly the price is established to cover all the costs and maximize the margin share, so several different strategies can be done.

Everything will depend also from the stage that the product it´s on the market. If you have a new product you can use, as an example, the penetration price and then the dilatation price.

In general we use the to analyse carefully the costs and then we do a market price comparison regarding to the product attributes and the target. After that, some survey and then the decision.

Thanks ... on quality and margin cost

Pricing strategy core direction is to satisfy customers needs. Idealistic price strategy is to provide customers with best featured products with most affordable price and at the same time to provide sufficient margin for further products development. Certainly inside there are many different ways and approaches  listed by other colleagues commented with  whom I am completely agree. 

In the luxury brands sector, customers often pay/and are happy to pay the perceived value of the product/service. Several elements play an impact, the following being a few:

1. Listing on the Country Brand Index 
2. Level of specialty
3. A USP that can't be replicated
4. Scarcity of the product/service you have

Pricing places a very important role in positioning the brand. Depending on the product the pricing strategy will differ also.

Pricing strategy will be based on the following factory

1) Competition

2) Management policy (eg: management wants a minimum margin)

3) Manufacturing cost

If we are dealing in luxury products, market competition will not have much effect since our product will still have market and hence high pricing can be done for those products.

If we are dealing in consumable products, then competition should be considered while working on the price.

If we are dealing in niche product then we can price with high margins.

Hence there are many factors which should be considered which working on prices

Pricing decision will depend on type of product, product features, place of sale. So, the pricing strategy, in brief shall be as follows

If it is an innovative product without competitor, you can charge a premium price for some time. However, in free market economy, a lot of competitors will enter and the price will come down by market forces.

For consumer goods market, you have to follow the market price and still you can increase market share through branding, packaging and positioning through advertisement and promotion.

In construction market, the commonly followed pricing method is cost+ pricing. Then you increase your market share through better and innovative design of building, customer segmentation, efficiency in managing construction through better sourcing of materials and one to one sales strategy.

While selling in selected market like Dubai International Airport, you can always charge a hefty premium price (though duty free but still higher than Dubai supermarket price!). This is because the travelers passing through this Airport are quite busy people and they would like to buy something for their family (like chocolate and so on) right away otherwise they will certainly miss it 

Thanks Colleague ,

Fully agree with Mr. Pedro's Answer