Deal or no deal?

Life’s expensive. Everyone understands that. A lot of people are bargain shoppers, always looking for the best deal, the best way to save as much money as possible. Many people are loyal to certain businesses because they offer the best deal and if the prices ever change people can get angry. I once worked at a BBQ restaurant that had decent prices and during my time there the prices of most items increased, by less than ten cents. This increase, even though it was so small, infuriated quite a few regulars. This goes to show that people like deals and when they feel they are no longer getting a good deal they get angry and a lot of times will go somewhere else. Pricing products can be a difficult game of monkey in the middle. Price too high you lose potential customers. Price too low you risk not covering expenses. Changing prices based on the current market risk losing customers, because prices aren’t consistent. The best price points vary for every company and can change over time. Big companies like Nike and Starbucks can aim high, because their loyal customer base, people buys it for the popularity aspect. Whereas, small locally owned companies need to aim low enough to compete, but high enough to cover costs. When deciding on prices for a business an entrepreneur must know what the most customers are willing to pay and what prices they are competing with in the market.