Is pricing both an art and a science?

1 Answer | Add Yours

pohnpei397's profile pic

pohnpei397 | College Teacher | (Level 3) Distinguished Educator

Posted on

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).

We’ve answered 318,991 questions. We can answer yours, too.

Ask a question