Is pricing both an art and a science?

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pohnpei397 eNotes educator| Certified Educator

Pricing is certainly both an art and a science.

Pricing is a science because it is based on some objective numbers.  A price should be based to some degree on the costs incurred in the creation of the item being sold.  To this extent, it is a science.

However, it is also an art.  For example, it is necessary to decide how to price items at various times.  People who make decisions about prices have to think about when to put a given item on sale.  They have to think about when to include it in various kinds of promotions. They have to be able to have a feel for how to change prices in order to get the highest overall profit in the long term.  

In these ways, pricing is based both on objective numbers (making it a science) and on intuition (making it an art).