Objectives of Pricing
Product pricing objectives can be set by companies and these objectives can either be revenue oriented or patronage oriented. Revenue oriented product pricing ‘s goal is to maximize profit for the company; this is also related to traditional sales where a sales is a win-loss situation where an unfair trade is occurring between the buyer and the seller. Patronage oriented product pricing ‘s goal is to maximize the number of loyal customers that the company have; this objective is related to the relationship sales theory which is a win-win situation for both the buyer and the seller equally. Moreover products can be sold in a lot (bundled) or in units, the decision of selling products in bulk or in units depends upon the pricing objectives set by your company.