Pricing policy is an important part of a company's marketing strategy. It is the collection of rules and principles that a company employs to decide the pricing of its goods and services. A company's price strategy may greatly influence its profitability, market share, and customer loyalty.Businesses may use a variety of pricing schemes, each having benefits and cons. When determining the selling price, companies add a markup to the manufacturing cost in cost-plus pricing. Value-based pricing includes determining prices based on the customer's perceived product or service value.For new products and services, penetration pricing sets a low price to gain market share, whereas skimming pricing sets a high price during the first launch time. You can adjust prices dynamically in response to market circumstances, demand, and other variables.A variety of variables determine a company's pricing strategy, including the nature of the product or service, the target market, the competition, and the company's overall marketing objectives. In addition, the price strategy must be consistent with the company's brand image and client expectations.