Pricing in an entrepreneurial venture

Knowing prices are what can cause gains or losses in companies through any industry of any kind. Competitively pricing items are what attracts customers, and customers talk to other customers who can spread the word for your price. Yet seeming so simple, pricing items can be very difficult considering prices fluctuate on the market, weekly, even daily. Having too high of a price will run customers to other stores but pricing products too low may attract nearly all customers but can also create a loss in the companies profit so knowing the competitive price and adjusting according to that will create success in your line of products. There is a difference in price and pricing, the price is what you want someone to pay for the product while pricing is the process you go through to get that price. While in the pricing process, there are two methods you can choose which are competition-based pricing and cost-based pricing. Cost-based pricing takes in all that it has cost you to make that product or all that you have in that product to get it for sale so you know the minimum you may be able to charge while competition-based pricing looks at other producers that have similar products so you know what the market may be able to bear.