The price is decided for a particular unit or product of any company by the authorities with the involvement all the factors of market, keeping in the view of the quality of the product and other factors like supplier as well, the decision is made for pricing a product is obliviously is to make the more profit but there are some other reasons as well for which the price is maintained.
Prince Stability in Different season and Different Place:
Price must be stable of any product it should not vary time to time, season to season, place to place which can be known as unique price these things are specially maintained by the brands but yes the fluctuation of price is truth the fluctuations takes price in the commercial areas, weather and so on.
Achieving a Target Return:
To achieve the target or rate of return in investment the money is fixed with a particular agency or financial institutions who offer very good rate of return on the saving of an amount of money.
Computing the Market:
In the market there are different types of prices are fixed as it is famous saying for the market that it is like a boxing ring in which price captures the market by fixing a fair price, prices are fixed accordingly like low, high, introductory and sometimes competitive when it is required.
Buying Pattern of the Customers:
In this phase the particular customer age is kept in mind that who is your customer, Age difference of the consumers either you are launching for the kids, youth, or old aged persons who is going to purchase the product of the company.
Long Run Welfare of Firm:
Fixing a reasonable price so your product and firm can run for a long time no seasonal charges no placement charges will keep the belief of customers on company’s product in this way it is very easy to survive in the market less fluctuation will allow you to remain in the main stream of the market for a longer period of time.
Social and Ethical Contribution:
Though fixing a price a fair price is how you are serving the society should be a price to which the society who is your customer must accept and encourage you remain in the market through the purchase of products of the company.
Resources are to be mobilized as it can increase or we must plough back some money from profit so it can grow our business.