What Is A Pricing Plan?

A pricing plan is designed to determine the exact price that a product or service should be marked at for it to be successfully sold in the market. Many companies have gone bust because they have had a great product, but a very poor pricing plan. A pricing plan is basically a strategy that results in the fixing of a set price for a product or a service based on a number of external and internal factors. The pricing plan would take into account all these factors and their impact on the success or failure of the product to fix a proper price to the product or service in question.

There are a number of factors that go into devising the accurate pricing plan. These include external as well as internal factors. External factors include the target audience to which the product or service will be offered, the buying power of the target audience, the pricing of other similar products or services in the market, etc. Internal factors include the profit margin that the company is looking at, the brand value of the company, etc.