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Pricing is one of the four elements of the marketing mix, along with product, place and promotion. An effective pricing strategy is vital for companies who wish to achieve success by finding the price point where they can maximize sales and profits. Companies may use a variety of pricing strategies, depending on their own unique marketing goals and objectives – and also on which industry they represent.

Costs (direct or indirect) are the expenses that a business incurs in bringing a product or service to market. The selling price is the amount a customer pays for that product or service. The difference between the price that is paid and the cost that is incurred is the profit the business makes when the item sells. If a customer pays £10 for an item that costs the company £5 to produce and sell, the company makes a £5 profit.

When pricing, a seller must always consider the costs of shipping goods to the buyer. These costs grow in importance, as the freight becomes a larger part of total variable costs - quantity, weight and distance from seller will generally increase shipping costs considerably. Pricing policies can be established whereby the buyer pays all the freight expense, the seller bears the entire cost, or the seller and the buyer share this expense.

Setting prices for international markets is not an easy task. Decisions with regards to product, price, and distribution for international markets are unique to each country and will inevitably differ from those in the domestic market.

The UK bathroom industry is booming, despite stiff competition from overseas manufacturers – and with the continued steady improvement in the UK economy and in the building and home improvement markets in particular, the future looks bright for this sector.

An Introduction to the UK Lighting Industry

Currently there is a relatively even split between commercial and domestic lighting in the UK. Over the last 25 years the industry has been subjected to a great deal of new legislation and standards together with a general increase in the legislative burden on the industry.