pricing a product

Pricing is perhaps the most difficult marketing task for businesses big or small, yet
improperly pricing your products is the best way to destroy your profitability. If you
want to maximize your profitability you must move beyond the standard rules of
thumb and gut instinct used by most small businesses.

Value is how much your product is worth to the consumer. Each consumer
will consider your product to be worth a different value depending on how
much they desire it, the necessity of your product, and the amount of money
the customer has to spend.
The value to the customer may be above or
below the price set for the product. If the
price is below the value, then the consumer
will purchase the product. If the price is
higher than the value, they will not make the
purchase.