Pricing

Pricing is the creation of a price. In a market economy the price is made by supply and demand. The suppliers would like to get the price as high as possible and the consumers would like to pay as few as possible. Prices will be built if consumers and salesmen make an agreement of the exchange of goods.

Oligopoly

There are many consumers but only a few suppliers.

Monopoly

There are many consumers but only one supplier.

Polypoly

Many suppliers are compared to many consumers. By the low market share of the individual supplier you call it "atomize market structure". You also call this market form competitive market.

Suppliers

• Cost of production
• Amount of the market price
• Speculation
• Production facilities
• Market position of the suppliers
• engineering progress
• national sanctions
• quantity demanded

Consumers

• Cost of production
• Necessity
• Available income
• Quality of the product
• Price of substitute (compensating) goods
• Price of complementary (additional) goods
• Quantity of supply

Law of supply

The supplier will offer more goods, if the market price is rising. (and backwards)

Law of demand

The consumer will demand more goods, if the market price drops. (and backwards)

Pricing Media

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  A price tag is a highly visual and objective guide to value.

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  The purchase of a printer leads to a lifetime of purchases of replacement parts. In such cases, complementary pricing may be considered.

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  A discount is any form of reduction in price.

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  "Everyday Low Prices" are widely used in supermarkets.

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  Premium brands rarely discount due to the potential to tarnish the brand. Instead they offer gift packs to provide customers with value.

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  The price tag for the Xbox 360 Final Fantasy XIII Special Edition bundle at Target at the Shops at Tanforan in San Bruno, California. The bundle includes an Xbox 360 with a 250 GB hard drive, 2 controllers, and the game and comes in a box with a Final Fantasy XIII theme.

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  Extensive use of the terminal digit 'nine' suggests that psychological pricing is at play.

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  A used-car salesman may consider factors that signal the buyer's socioeconomic status, such as how the buyer is dressed and whether they sound educated, to decide what price to offer during price negotiations.

• News report by Voice of America about ticket prices at the 2016 World Series, the first world series game at Wrigley Field in 71 years

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  This car prominently displays the cost of monthly payments, rather than the total sticker price.