The price of a product is the amount of money which eats buyers have to pay to obtain it. It is the exchange value of the product. The pricing of products, is of great importance to any organisation because of the effects of the set price on such factors as sales, profitability, salaries and wages, growth of the company, competitors reaction, government actions and consumer reaction. The general level of price in the country affects consumers welfare, the national economy, and the business growth. Therefore, inserting price for products, a company will have to take into consideration both micro and macro environmental factors which have interest in it prices.
Price inflation is very high in nigeria. The prices of virtually all products price almost on daily basis. Though there are government legislatures to control price, these are not usually implemented. Government implementation of backpacking and guilty conscience. The government itself increases its fees, charges, petrol price, highway gates toils and engages in expenditures that encourage inflation. The price of a product of government owned companies, such as electricity telephone and fertilizer have also been increasing rapidly over the years. The increases in the price of these goods and services have multiplier effect on the prices of products produced by the private sector. Government can set the ball rolling in price control by controlling the prices of its goods and services. The private sector will then follow.
