PRICEZakwan , Sirjan , J-cyn , Helena , Xiang Yen , Jack

Definition• The amount of money expected, required, or given in

payment for something.

Importance for Business• Depending on the target buyers, if the price of the product

is too high, the product will not be sold. If the product is priced too low, not enough profit can be gained to maintain the business.

• Price of the product affects the growth of the business.

Strategies of making profit• There are two strategies of making profit in terms of the

pricing of product.• If the seller was to set the price of the product low , then

customers would be willing to buy from the shop as compared to others

Case example – how to sell• Selling a pen• A company would either make the price very high or low

depending on the strategy they are using.• Selling low would make it cheap where they would

increase price when demand increases – longer time to make profit

• Selling the pen at a higher price would satisfy the demands of some customers as some people think that they are getting a product that have the equivalent quality to their cost.

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