Introduction
“The moment you make a mistake in pricing, you’re eating into your reputation or your profit” – Katherine Paine
Product pricing is one of the 4P’s of the marketing mix, and a critical element of your revenue generating and competitive capacity. The other elements of the marketing mix are the product (merchandise), place (location), and promotion (advertising). According to a Harvard study, a mere 1% correction in your pricing strategy can add as much as 11% to your profit margin. Inappropriate pricing can adversely affect your retail business. Too low a price can create an impression of low quality. Unsuitably high pricing may affect your competitiveness in a product category. As