It is best to anticipate rising costs when setting prices so that frequent price changes are not necessary. Sometimes, itemizing the final bill may help customers understand the amount charged. Frequently customers do not realize the amount of time involved and costs of materials. Regional differences can affect prices. Odd number refers to setting prices just below even dollars.
Customers often perceive they are getting the item for less.
In most cases, the higher the quality, the more customers are willing to pay for a product or service. Sometimes it is more economically efficient to produce multiples of the same product. In some cases, the cost of producing the product or service is too high. No matter how great it is, the market is not willing to pay the price a business needs to charge to make a profit. On the other hand, there are times when the market will pay a much higher price than the actual cost of producing the product or service.