Price is a determinant of the success of a company because the price determines how much profit will be obtained after the product sold to consumers.
there is a miraculous goal in setting the price, as below:
1. Obtain the optimal profit
Set the price competitive or competitive, the company will gain optimal. which is a competitive price is the price set by the company can be reached by customers with good quality products.
2. Make the company stay afloat
Value of the advantages of the company to cover operating costs so that the company can still survive. eg for memeberi salaries, pay electricity bills, telephone, raw materials, and others.
3. Achieve a return in investment as
Companies want their money back faster than investment for the company, appropriate pricing will accelerate return on investment.
4. Mastering market share
by setting low prices of competitors' products makaakan can distract consumers from competitor products on the market. but it must be remembered low price but the quality should be good
5. Maintain the status quo
Companies that have their own market, need to pay attention to setting the right price in order to maintain existing market share.