The first step when planning pricing policies for a good or service is to develop pricing objectives.
Step-by-step explanation:
- The first step when planning pricing policies for a good or service is to develop pricing objectives.
- Pricing objectives are the goals that guide your business is a setting of the product cost or service cost to your valuable customers.
- examples of pricing objectives include maximizing profits, increasing sales volume, matching competitors' prices, deterring competitors.
- Some commonly used pricing objective are:
- increase monetary sales.
- increase market share.
- survival
- avoid government investigation or intervention.