The goal is reasonable profit - The Great Encyclopedia of Oil and Gas, article, page 1, reasonable profit.

Introduction. If no reasonable profit is made, then a mistake has been made If reasonable profit is not made, then a mistake has been made. Many people believe that pricing has nothing to do with marketing. It is true that some aspects of pricing--complex calculations, forecasts, risk calculations--seem to have little to do with marketing, but the final price you set is very important to marketing. It sets the benchmark against which your customers (and potential customers) will judge you. If you paid? 250 for a new pair of shoes and the soles have worn through after two weeks, you will probably get angry and go straight back to the store and ask for a refund. But if you only paid for them? 2.50, you'll probably just shrug and think, "Yeah, you got what you paid for." Absolutely. You assume that a pair of shoes for ?250 will be flawless quality, whereas a pair that costs only ?2.50 will probably never be worn for very long. Likewise, if your products or services are priced higher than your competitors, your customers will assume they are better. If they are cheaper, your customers will expect the quality (or lack thereof) to be appropriate. In fact, the price you charge is one of the strongest marketing signals you can give. Use a site search: studopedia.org - Studopedia.org - 2014-2023. Studopedia is not the author of the materials that are posted. But provides free use (0.01 s) .