Financial position of the company

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2. Market awareness. The better a company understands its niche, the more accurately it can set the optimal price for a product or service. This is achieved through marketing research and constant monitoring of the actions of major competitors.

3. Cost of production. Production costs can be gradually optimized, thereby reducing the price of products. For example, a company can:

reduce advertising campaign costs;
find new suppliers of materials and raw materials;
locate the warehouse closer to production and save on transportation costs;
introduce new production technology, thereby reducing its cost and adjusting the price.
4. Focus on a specific segment. The price of a product may depend on the target audience that manufacturers are willing to focus on. There are even situations when identical or very similar products cost differently in two stores: with economy products and luxury and premium products.

5. Company image. Famous brands can often afford to set prices significantly higher than other competitors.

6. . The financial stability and liquidity of the company affect its pricing chile phone number list capabilities. Companies with a strong financial base can be more flexible in setting prices, form different offers, implement new solutions and risky pricing strategies.

And all this is only a part of all possible internal factors that form the cost of a product or service.

In many ways, they are considered more significant because they cannot be controlled or changed to suit the needs and interests of the business. External factors can only be prepared for or quickly adjusted to at the right moment.

1. Demand for the product. The most important factor that affects the price of the product. Usually, when demand is high and supply is limited, the company can influence the price change and increase the cost of one product. This way, it can make a higher profit per unit of production.


2. Market competition. Market competition is one of the most significant external factors that determines the price of a product in a specific period of time. The fight against competitors will force you to adjust the cost of production and the price of products against your will.

For example, companies are often forced to lower prices to retain their customers or lure away a competitor's audience. Much depends on the type of market, segment, and number of competitors.