Pricing software is an electronic program commonly used by companies to price their products or services in an effort to yield the maximum amount of profit. A user plugs in the data into the required fields and software returns information -- charts, graphs or text -- that allows the user an analytical perspective on the price of a product or service.Continue Reading
Pricing software often uses multiple variables, including projected sales and the costs involved with making a product or executing a service, and determines an adequate price or range of prices for that product. Depending on the complexity of its design, pricing software may provide detailed information on other aspects of pricing, including suggested retail pricing. Some software has a component that allows it to incorporate a particular market's economic climate into its calculations.
In an economic approach to pricing, the higher the price, the lower the number of sales, and vice versa. Pricing software employs this idea of supply and demand to determine the cost of a product. It produces hard numbers that many companies use as a foundation for their pricing habits.
The software does not take into calculation certain variables determined by human behavior, such as perceived value, a factor which some companies use to their financial benefit.Learn more about Software