In my opinion I think pricing a product need both of those aspect are
cost involved in making a product or service and consumers are willing
to pay for that price.
If the product is sold at the right price that consumers are willing to
pay, this will help for company to maximize there sell volume.
When the product is sold under it landing cost, company will be
immediately suffer and soon to be bankruptcy.
Pricing a product, between pricing for the price that consumers are
willing to pay and cost for producing that product. Which one is more
important depend on the stage of the product in their product life
cycle, depend on marketing plan for positioning that product in the
market and depend on which kind of product is.
For example almost all kind of perfumes have a low cost in producing if
compare this cost with the retailer price. For raw material such as
coffee bean, pricing must be focus more on cost for producing it.
That is my idea, welcome all of your comment
First of all, I want to clarify the concept “fair price”: “Fair price” is the
maximum price which would be agreed upon by a seller willing to sell,
who does not have to sell and a buyer willing to buy, but who does not
have to buy, where both have reasonable knowledge of the facts.
As we know, Demand-Supply rule generally creates price’s big-
range fluctuation from a floor (total cost) to a ceiling (the highest price
that a buyer’s willing to pay in competition market, or that a buyer’s
ability to pay in monopoly market) with many accepted prices
making “fair price” unclear and unstable. In wide market, the market
price is a good example for us to understand easily both the right price
due to being accepted by and a fair price due to satisfying buyers and
sellers. From above idea, the right price, called market price which is
always under control of supply vs. demand rule, is just a fair price only
if still being in the range with total...