Question

Discuss why implementing proper pricing strategies is important to profitable business operations.

Answer 1

Proper pricing strategy is very important to just increase the profit of the firm but also to ensure the market share is being mostly occupied by company due to competition.

pricing strategy help business to improve gross margin which ultimately covers expesnes and improves profit if anything left over why pricing strategy is so important because a dollar high in price may resultant in decrease in sales voulme of business if everything else remain same for competitors similarly a dollar less in selling peice might increase the sales volume which will provide incremental revenue and margin and hence improve gross margin and oper