👉 Pricing math is the application of mathematical principles to determine the optimal price for a product or service, balancing revenue goals with cost considerations. It involves analyzing factors such as demand elasticity, production costs, competition, and market conditions to set prices that maximize profitability while ensuring customer acceptance. Techniques like cost-plus pricing, value-based pricing, and dynamic pricing are employed, where cost-plus involves adding a markup to costs, value-based pricing aligns prices with perceived customer value, and dynamic pricing adjusts prices in real-time based on demand fluctuations. The goal is to find the sweet spot where prices are competitive yet profitable, taking into account both supply and demand dynamics.
