Pricing is indeed a very important tool with which an organization can market its products and increase the profit margins. Indeed, I was in a good position to appreciate this fact after I interviewed a few people during the Triathlon MLB even. During the event, I observed that many of the stands that were at the venue were offering some products that had different price tags.
During the interviews, I found out that price is usually determined based on a number of factor. The first factor is the time within which the product has stayed in the market. In this respect, products that have been on the market for more than two years have always attracted lower prices than those that have been developed and brought into the market in less than two years.
Pricing of the product is also determined by the nature of clients the vendors deal with. In this respect, price differentiation becomes a very important tool of marketing. For consumers that are in the suburbs, prices of the periods sole would be relatively higher than those that are sold in the low-end user regions. In this respect, business persons do give great consideration to the ability of the consumer to spend on a product.
The backdrop of this consideration of that the consumer’s price of persons living in the suburbs would be relatively higher than those that love in the low economic regions.