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Good detail on pricing, and there is alot to study on this topic. Arriving at a final price for your product/service is a complex process and it goes much deeper than comparing to competitors. A good pricing strategy helps a company determine the price point at which they can maximize profits on sales of products or services. When setting prices, a business owner needs to consider a wide range of factors including production & distribution costs, competitor offerings, positioning strategies & the target customer base. While customers won't purchase goods that are priced too high, your company won't succeed if prices are too low to cover the business' costs. Along with product, place and promotion, price can have a profound effect on the success of your small business. what are some similarities and differences between skimming pricing, prestige pricing, and above-market pricing? Which one are you most familiar with?
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