Basically setting of prices is an effective and critical stage for every management. It involves many factors to be considered to set the final price of the product. From the sales point of view, the manager has to set a competitive price through which they can earn more profit. The ratio of sales increases and they can compete well in the market. Whereas accountants are reviewing the prices to effectively reduce the cost in order to have high-profit margins. All these factors are considered to set the prices.
From my point of view, the accountant's point is valid. the prices are set in such a way to earn maximum profit. Whereas I totally agree with the sales manager’ s point of view, is to set competitive prices to excel in the market. The sales managers can play a drastic role in price setting. The prices of the products are such which brings high yield and simultaneously gets high sales from the market. The price setting process also considers the point on which the consumer has to pay indirectly the sales tax.
All these terms should be kept in mind before pricing. Therefore I am of the opinion that price should be set in such a way that the company gets maximum profit as per accountants point of view and can get high sales with competitive prices from a sales managers point of view. Other factors which can be viewed for pricing are the company’ s repute, its market share and the return on investment before setting the final price. Bad publicity is a common phrase in the emerging business world.
There are many factors which can gain bad publicity for the company. It could be because of some dissatisfied employees, or customers, due to some accidents or some mishap at the factory area. It could be anything which costs heavily to the company. The competitors’ takes advantage of such incidents and the financial effect are adverse in such cases. The share price of many companies in such situations falls rapidly. Whatever the case may be which results in bad publicity. The key is how to handle the situation. Most of the companies avoid having public dealing or meeting which creates a negative impression in such a situation.
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