Definition: is an organization-wide policy that a company adopts to set the wholesale and retail prices for the services and products that it offers to the customers. This policy has to be tailored and adjusted according to the changes that occur in the market or in the business environment so that the company can stay profitable. When determining the pricing policy, a company should factor in the following: the competitive situation on the market, its desired income figures, and any government policies that may prevent the organization from setting a high price. This term is also closely related to pricing strategy.
In a Sentence:
It’s the management’s duty to have such a pricing policy that is both profitable for the firm and will let the clients feel like they are getting a great deal.
Last Tuesday, the board gathered for a meeting to determine the pricing policy for the new microwave oven model. Their primary goal was to make sure that they set a competitive price and will help them get ahead of Easy Cooking.
Due to the recent drop in sales, I think we should adjust our pricing policy and make it more customer-oriented.
Synonyms and related words: pricing strategy, demand, course of action, penetration pricing, price-based competition