Pricing decisions come with several challenges, including:
Price Sensitivity: Customers' sensitivity to price changes can vary widely, making it difficult to set an optimal price. Competitive Pressure: Competitors may quickly react to pricing changes, leading to price wars. Cost Fluctuations: Changes in production costs can necessitate frequent price adjustments. Regulatory Constraints: Government regulations can limit pricing flexibility. Ethical Considerations: Pricing strategies should align with ethical standards to maintain customer trust and brand reputation.