ABSTRACT
It is easy to think of pricing as merely a mechanism for higher revenue and to have with it, a rather detached view of how pricing strategies should be developed. Yet fundamentally, for the firm to get its pricing right, individual buyers must be willing to pay for a service. The market demand for a service must therefore, at the base of it, consist of buyers willing to part with their money to pay for the service. In fact, there must be a sufficient number of such buyers willing to do so for the firm to be able to cover its costs and turn in a profit.
