Pricing decisions can be very flexible. The sole proprietor may make an instant decision to grant a discount because of an intuitive sense that this customer, when happy, may bring more business. Might be considered intuitive because it is seldom documented in any formal way. It is all in the brain of the one individual, and can be called upon to influence many daily decisions without constraints of policy or rules. When the entrepreneur is smart, this usually leads to a very successful business.
Success often leads to growth of demand and volume.
When the volume is too big for one person to handle, the proprietor brings in a partner or an employee. Here the complexity begins. Organizational growth causes the fracturing of the corporate knowledge into the mind of various employees. This requires the distribution of decision-making and more formal mechanisms for the transfer of knowledge, business data and authority. All this leads to more complexity.