What factors should be considered for price-setting in foreign markets? Which of these factors is the most important? Why? Why is adapting the price of a product to a foreign market important.
Pricing policy is an essential decision, which is complex and technical. It requires reflection. The level of price set is crucial for two reasons: because it governs the success - or failure - of your commercial policy and hence your sales volumes, income and profits. If the price is too high, sales volumes could drop. On the other hand, if the price is too low, you risk suffering a fall in earnings, or even selling at a loss.