What is pricing in business?

Pricing in business refers to the method of determining what a company will receive in exchange for its products or services. It involves considering factors like fixed and variable costs, competition, company objectives, proposed pricing strategy, targeted consumer and willingness to pay.

Fixed dollar increases involve changing the list price of a product or service, while percent-based increases involve changing the profit margin.

The break-even point is the point at which total cost and total revenue are equal, meaning the business has neither made a profit nor incurred a loss.

Comparing different pricing scenarios helps a business determine the most profitable pricing strategy.