When setting prices, an organization must consider a wide variety of financial market factors. These factors may include interest rates, currencies, equities and financial instruments. Each one of these factors may negatively or positively impact pricing levels that organizations assign to their products or services. In addition, a company must also consider competitor pricing. Without the appropriate pricing methodology and strategy for products and services, organizations may experience declines in customers and sales.
This benchmarking tool describes pricing risk and outlines business risks related to pricing, best practices and questions to consider.