Grade 7. Pricing


PRICING OF GOODS AND SERVICES
     1.      What do you mean by pricing of goods and services?
  Ø  Pricing of goods and services refers to the amount that will receive by company for exchanging of goods and services. Pricing should be in such way that one can earn higher profit as well as maintain good relationship with customer.

     2.      Enlist the aspects to be considered in pricing of goods and services.
  Ø  The major aspects to be considered in pricing of goods and services are as follow:
i.                    Total production cost – It includes the cost of raw material, labor and other expenses.
ii.                  Office and administrative cost – It include the cost while running the office.
iii.                Selling and distribution cost – it includes the cost while providing products to the customers
iv.                 Profit that one wishes to gain

     3.      In what situation, price is reduced?
  Ø  The price of the products or services is depend on the demand. If the demand is high, the sellers charges the high price because of it's popularity. On the other hand, if the demand is low, price is also reduced because of hard selling.

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