Internal and external factors
Pricing is key aspect in marketing your product or service. Many components are involved in determining the right price. Overall, price is the amount of money charged for a product or service, but more broadly, it is the total sum of all the values that consumers exchange for the benefits of having or using the product or service. Several factors are involved in pricing decisions. These can be broken down between internal and external factors. Internal factors include marketing objectives, marketing mix strategy, costs which includes fixed and variable costs, and organizational considerations. External factors include nature of the market and demand, competition, and other environmental factors such as the economy, resellers and government. Together, these internal and external factors combine to determine the most appropriate pricing strategy.

Pricing – a key component of your communications and positioning
Beyond all these factors which firms must take into account, pricing is, in essence, a key component of your communication and positioning strategy. Pricing communicates where you have decided to play in the market and the value you place on the internal quality factors that only you can evaluate. NewEdge assesses the communication and positioning aspects of price rather than just the quantitative factors.