There many elements to consider when it comes to deciding what to price the products or services your business sells.Three pricing elements loom above all others:

For virtually all businesses, pricing comes down to a delicate balancing act among three factors: your internal costs; the demands of the market you’re in; and, the one most people forget — your company’s strategic goals. Maintaining the balance among the three is key over the long term.

For instance, two competitors in the same industry with similar products and internal cost structures have radically different pricing policies depending on corporate goals. A company that is focused on gaining market share may cut prices and offer special incentives. Another company that is focused on short-term profitability may move to higher pricing and may even sacrifice some sales in order to make fewer, more profitable, sales transactions.

Other factors include cost pressures, the aggressiveness of your competitors, and shifting company priorities. Read the whole article at The Argus Observer.