The concept of pricing plays an important role in business company or organization since they help in generating revenue. It contributes to the success or failure of the organization’s pricing strategy. As a business student it is important for me to know and understand the strategy that is being used in business.
Art define as the creative method of doing things that indicates how an object was accomplished. It is an expression of human creativity and imagination to produce a work with beauty and emotions. The theoretical science conclude that art is keep on changing for the better result of work. So now what makes pricing as an art and science?
Pricing defined as the process of determining the value that is received by an organization in exchange to a product and services. It is the method used in setting price of a product to offer relevant to both producer and consumers. It is a process in which using different pricing techniques where the price of the product is determined. A managerial task that involves establishing pricing objectives. It identifies the factors that governing the price and ascertaining their relevance and significance. According to the article entitled “A Simple Formula for Pricing Artwork” said that pricing is the most complex tasks that emerging artist face especially when just starting to establish a business. Pricing is an art because it formulates price strategies, implementing them, and evaluating their impact on organizational objectives. The uniqueness of the property and its position in the marketplace makes pricing as an art. Its ability to make competition for sponsorship to gain trust and its desirability of property to sponsor category is a creative way that a pricing strategy used. Another way is its ability to meet the sponsor’s business objective makes it as an art.
What makes pricing as a science? Science described as the systematic study of structure and behavior. The method of doing things is through observation and experiment. It is used to gathers knowledge about the world and condenses the knowledge into testable laws and principles. The cost to deliver the benefits and the cost of sale and servicing makes pricing as a science. By using the method of science, we able to know the financial condition of an organization or business. We able to know the market competitions and able to understand that pricing is playing a great role in business.
I therefore conclude that pricing is really an art and science. The pricing as an art that uses creative way in gaining profit to achieve its objectives. The pricing is a science that uses method in finding and analyzing pricing strategies. They are both important tool with the same value which is to generate strategy in creative ways and to understand the market competitor and people.
Pricing is both an art and a science. On the one hand, it involves understanding consumer behavior and how they perceive value. On the other hand, it involves analyzing data and using mathematical models to determine the optimal price for a product or service. One of the challenges of pricing is ensuring that the price is right for both the business and the customer. This is where tools like Priceva's Product Availability Tracker come in handy. The tracker allows businesses to analyze their product assortment, get customizable reporting, and track the availability of different products. By using Priceva's Product Availability Tracker, businesses can make more informed pricing decisions. They can see which products are in high demand and adjust prices accordingly. Additionally, the tracker can help businesses avoid stockouts by notifying them when inventory is running low.
Pricing is a complex process that requires both art and science. By using tools like Priceva's Product Availability Tracker, businesses can make more informed decisions and ensure that their pricing strategy is effective. Visit https://priceva.com/out-of-stock to learn more about how the tracker can benefit your business.