What should be a priority for managers when pricing their products?

Using benchmarks to assess competitiveness is crucial for managers when pricing their products because it allows them to make informed pricing decisions based on a comprehensive understanding of the market landscape. Establishing benchmarks involves analyzing competitors’ pricing strategies, evaluating consumer expectations, and considering industry standards. This information helps managers set prices that not only reflect the value of their products but also ensure they remain competitive within the market.

By utilizing benchmarks, a company can adapt to market changes and customer preferences, which fosters better pricing strategies that can enhance market share and customer loyalty. This approach ensures that pricing is strategically aligned with both market conditions and the overall business objectives rather than being based solely on profit maximization or cost minimization, which may lead to suboptimal outcomes.