Pricing and important factors?

Question

Explain the different methods pricing. What are most important factors do you consider when you price the product or service?

Answer 1

It depends on whether your product is a commodity, such as corn, or a differentiated product, such as the George Forman Grill. If your product is a commodity, meaning that there are a bunch of other sellers who sell the exact same product as you, then you need to price the same as your competitors, or your customers will just buy it from them. If you sell a product that is differentiated from your competition by some factor, you may be able to command a slightly higher price because of the differentiation.