Factors to consider in setting prices

• The objectives of the company can influence how it sets prices for products.
• The total costs of production and any activity involving the marketing mix elements will influence the price to be set for the product.
• The culture of the company will also affect the price to be set for the product.
• The life cycle stage in which the company’s product is, will also determine the price set for the product.
• The price competitors are charging for similar products will influence the price set by the company for its products.
• The policies and regulations of the government should be considered when setting the price of certain products especially if they are public products.
• The demand for the product will also affect the setting of the price for that product.
• The economic situation in the country will also influence the company’s price setting process.