Pricing

Pricing in modern markets is a process. Pricing is set by a company to mark what it will receive for its products. The cost of producing goods includes the cost of raw materials, labor, management, profits for shareholders, and other factors. The real price will be the cost the company sets after it has averaged in costs for incentives, competition, discounts, and promotions.

Traders in primitive markets exchange goods and services in the belief that the exchange results in a value gain. With the development of trading, exchanges were made in terms of in-kind valuations. With the development of money and more advanced markets, prices were applied to goods and services as valuations were derived from supply, demand, quality, opportunity, and other factors. Setting prices for ...