Discussion 6

Discussion 6

Which is more detrimental to a firm, pricing your product or service too high, or pricing your product or service too low?

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Your original response is due by 11:55 pm EST on Sunday, and then reply to another student’s post by Sunday at 11:55 pm EST.  The required length for your original posting is 350 words, and your reply should be a minimum of 250 words.

1st student reply ( Mayur Chaudary) :


Pricing of products and services

Pricing of products is one of the issues encountered in the operation of businesses. Some business entities set higher prices than what is offered in the market while others may set prices lower than what is offered. Some of the act as far as pricing is concerned are detrimental to the operation of a firm.

In my opinion, pricing a product or a service too low has a more detrimental effect on the operation of an organization than setting such prices too high. Sometimes, business owners are misled and believe that setting prices too low will improve the operations of an organization. However, that is not always the case. Pricing products and services too low have a disastrous impact on the organization (Nagle & Müller, 2017). In most of the cases, consumers always go services worth the payments they came. In a scenario where the price is too low, goods and services will be perceived to be cheap, and it may drive away customers. End users are not willing to look for services or goods from the organizations they believe that they offer cheap services which they believe that they might to be quality enough to meet their needs. It is also setting prices too low may lead to reaching a point where they give away products at a loss. Every organization aims to make profits and cater to all its needs (Nagle & Müller, 2017). In the event they sell products and provide services and low cost, they may end up using more finances in producing goods but later get losses. A business entity, therefore, needs to be cautious when setting its prices. Proper price setting for goods and services is essential as it plays a significant role in improving the profitability and acceptability of an organization in the market.

The setting of products and services prices too low is detrimental to the normal operations of a business entity. It is essential for an organization to pay a lot of concentration when setting prices for their goods and services. The process tells whether the organization will continue operating or no as poor pricing may lead to failure as well as the closure of a business operation.


Nagle, T. T., & Müller, G. (2017). The strategy and tactics of pricing: A guide to growing more profitably. Routledge.

Marketing MO. (n.d.). Pricing Strategy. Retrieved from Marketing MO: http://www.marketingmo.com/strategic-planning/how-to-develop-a-pricing-strategy/

2nd Student (Kiranmeyee gummadi) :


Product Price

One of the keys to achievement in a business is the suitable pricing of the facilities. Defensibly pricing properties and this will recover frequently sell, provided that the foundation for a money-making commercial. Get a pricing plan incorrect and container be generating Subjects Company will not ever solve. Pricing product typically includes considering certain main factors, like identifying target customer, watching how much rivals are paying, and recognizing the quality-price relationships. The good thing is that have a lot of flexibility in how to set the rates. The first stage is to get real clear on what users want to price plan to accomplish (Al-Mamun & Rahman, 2014).

Selling ability is drives revenue and that means hiring the best salespeople and following the bestselling plan. Pricing may affect how a client purchases services. Although the price of the commodity applies to a purchaser, it’s also significant to the vender. To increase sales, it takes a combination of favourable market dynamics, product efficiency, and customer preference and creation difference along with suitable pricing, which contributes to a product’s success (Dolgui & Proth, 2010).

Setting prices too high or too low can affect sales if we consider the price factor. The product is different from what it does in competition. Although smart customers usually compare shop, pricing user goods or services below rivals are paying does not necessarily give a competitive advantage. Expenditure is a key element in setting a level (Teplická, 2015).

Setting up lower prices from the beginning can set up the brand reputation being considered to be cheap. Adjust for the product prices, and then add to how much income needs to accept. The discount is the difference between the price that pay and the cost that charge. Comprise production costs and other selling costs in value. Making money involves producing enough revenue from the selling of goods so it can not only cover expenses but also collect a profit and maybe expand a business. The greatest mistake many companies make is to assume that profits are driven by quality alone (Teplická, 2015).


Al-Mamun, A., & Rahman, M. K. (2014). A Critical Review of Consumers’ Sensitivity to Price: Managerial and Theoretical Issues. Journal of International Business and Economics, 2(2). Retrieved from https://www.researchgate.net/publication/265598350_A_Critical_Review_of_Consumers’_Sensitivity_to_Price_Managerial_and_Theoretical_Issues

Dolgui, A., & Proth, J.-M. (2010). Pricing strategies and models. Annual Reviews in Control. doi:10.1016/j.arcontrol.2010.02.005

Teplická, K. (2015). Comparison of Methods for Pricing of the Product and its Impact on Economic Efficiency of Enterprise. Procedia Economics and Finance. doi: 10.1016/S2212-5671(15)01613-5