TOMNUB, LIZZETTE N.

MM 3-1
1. Supposed you are one the businessmen/women in the industry how will you determine
the right pricing for your business.
Setting prices is one of the most important procedures in the development of your
business is pricing. It's not only about the price you set for the goods and services you
provide. Effective pricing plan will help the company's success and profitability, we may
start with production, making sure to cover all of the costs associated with creating the
product/service in order to ensure a return on investment. The way you price your
products or services can reveal a lot about your company's personality, as well as how you
view and treat your competition and how much you respect your consumers. That’s why
it’s important to have a carefully planned pricing strategy. Also we can learn from the
tactics made by competitors, we can actually carefully examine what is best for us to stand
out, setting the price too high can lose potential customers while setting prices too low can
lead to bankruptcy. Moreover, we can conduct market research to be aware we can
acquire this by simply talking to our relatives and friends or taking a simple survey to the
potential customers with that, we can make a decision on what are the effective pricing
strategies for the company and show that we value our customers when it comes to
business.
2. Explain why Economic forces, including inflation, wages, Disposable income and
regulation influence pricing by market.
In what way does inflation effect pricing Inflation is defined as an increase in the price of
goods and services. It has an impact on pricing since suppliers and enterprises are forced to
raise prices and pass them on to customers, even if they cannot afford the sudden increase,
especially if raw materials become more expensive. How do wages effect pricing? As workers'
earnings rise, they are more likely to want more items and services, resulting in price
increases. People who earn less than the standard of living, on the other hand, will prefer to
save and buy less rather than spend more. How disposable income affects pricing Individual
income has a significant impact on pricing because if businesses and firms are aware of the
circumstances in their area, they will understand how income influences how they set their
prices while earning profit, taking into account the market's income status. Furthermore,
demand will be altered if a consumer's purchase is based on their income. How do
government and industry regulations affect pricing? Government and industry laws can have
a variety of effects on the selling price of many products and services. Regulations have the
potential to raise or lower the cost of raw materials and other industrial inputs. Regulations
can increase or decrease the prices of raw materials and other necessities for production.
Sometimes, complying with regulations can be costly for some firms and thus may pass the
increase of price to the consumers. Regulations create taxes, subsidies, and tariffs, and firms
must comply with permits and licenses, which must also be taken into account when pricing.