The term price originated in c. 1200, pris "value, worth; praise," later "cost, recompense, prize" (mid-13c.), from Old French pris "price, value, wages, reward," also "honor, fame, praise, prize" (Modern French prix), from Late Latin precium, from Latin pretium "reward, prize, value, worth," from PIE *pret-yo-, suffixed form of *pret-, extended form of root *per- (5) "to traffic in, to sell." Price is arguably the most important of the decision drivers. Sales people are taught to save price for last when negotiating with customers. So what is the value or worth of your product? Is your product a prize for customers? Does the product give fame to the client?

Pricing products is one of the most difficult exercises for companies. Too high of a price may equal fewer customers. Too low of a price may equal a negative perception in the customer's eyes. Pricing models are a good start to value the product. The key to the decision making process is bringing all five decision criteria together to determine if a customer buys your product. Is you product worth it?

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Handful of paper, strolling with a shopping cart, decide on a prize