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Is Price Just a Number?

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Price is the amount of money charged for a product or service for the benefit of receiving a product or service. The word “benefit” is emphasized because small business owners frequently lose sight of the relationship between benefits and the simple transaction of buying and selling.

An example is that of eating in restaurants. Most people eat in restaurants to celebrate an occasion, for “date night,” or merely to take a break. The experience of eating out is the benefit, and the price tag cannot fairly be compared to the money spent if the same meal was cooked at home instead.

Pricing Strategies for Small Business

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