Pricing is the process by which a business establishes the price of the products or services they sell. It means determining the product or service's real and perceived value and comparing that with its supply cost and competitors' prices. It is vital because it determines the profitability of the product or service. It also has a direct bearing on consumer acceptance and the future marketability of the product or service. The wrong price can trigger a series of events that can even lead to the failure of a company or organization. It affects the consumer perception of not just the product or service but also the organization behind it.