Significance - Pricing, Principles of Marketing Video Lecture | Principles of Marketing - B Com

why is pricing important well you go
into business to make some sort of money
and you need to set the right price so
that you have sufficient profit to
achieve what you wanted to and there are
a lot of businesses that if they were to
take out the owner and replace them with
an employee doing the same work on a
commercial salary that business probably
wouldn't make a profit so you need to
set your prices to get the right finance
outfit whatever you set out to achieve
charging the right prices allows you to
provide a good quality job in which you
can be proud so when you do a job we do
sets of accounts I sign them off you
would do the same sort of thing with
your own work you want to be proud of
that work I assume and if somebody
negotiates a fee down to half your
normal fee you've got to squeeze on the
quality of work that you can do in that
time and I don't know how you feel but I
don't want to send out work I'm not
proud of the third bit is your personal
time with business owner if you don't
charge enough you can't pay somebody
else to do all the hours it's often the
business owner who ends up putting in
those extra hours so the business owner
loses their time either their personal
time to do something all the time that
they could reinvest into growing that
business so three reasons for setting
prices correctly is the financial side
we all know it's to be able to provide
the right quality of job and the your
time as well so you're not subsidizing
business in that way