Pricing Refers to the process of deciding the price of a product . The price of a product represents the sum total of the values that a buyer expects to derive from owning or using a particular Product. Factors affecting the pricing of a product are :

• Product Cost : The first consideration in fixing of the price of a product is Its Cost of Production , Distribution and Selling the Product . These are broadly those types of costs viz. Fixed Costs , Variable Costs and Semi Variable Costs . 
• Extent of Competition in the Market : If the level of competition is high , the firm is likely to fix the prices of its products on the lower limit . Whereas , if the level of competition is low , the price of the product is likely to reach the upper level . 
• Government and Legal Regulations : In order to safeguard the interest of the consumer against unfair trade practices in the area of pricing , the government may intervene and regulate the price of the product .