What are the constraints in determining the selling price?

IT depends upon the following:

1. cost of raw materials (high value or low value)
2. demand of the market(if the demand is high in the market and supply is less can be deter mine as little higher price)
3. competitor brands (in what price the market is running through the product)
4. time limitation for supply(it depends upon time of supply cause ifits time taking or can be delay to deliver ,the customers will go for substitute products rather than getting it..in that case selling price plays the vital role)

Greetings, I totally agree with Mr.Nivin and would like to add a few.

Many factors are involved in such process as

1)Economy of the country business is in

2)Competitive price of local market

3)Raw materials and etc...(costs of product/service)

4)Depends on profit expected and time estimated for growth

agree with the answer given by Mr. Nivin

1. Cost of Production and Selling
2. Supply and Demand

Good evening!

There are various factors in determining a selling price for a product or service.

First,we need to make sure that the price atleast covers for the cost of production,so that there is no loss. The price should also be compared with the competitors.Price also determines the brand value, so it should also be taken into account. The segment to whom the product is going to be launched( a product produced here can be sold at a different price than the same product sold internationally) , time of launch (season or off season)

Hvaing said the above points, price fixing is very dynamic and can be subjected to the business strategy as well. For eg,a product can be launched at a very low price(may be without profit or sometimes even at loss) for a certian period to create an affinity or addiction for the consumers and then increase the price so that the consumers dont mind to pay.

The price can also very with the amount of products bought by a customer, for eg, a bulk deal or for a regular customer who has a long relationship with the company.When there is a product to clear off, we can reduce the selling price by comapring with the storage price.