By evaluating what services or products I offer and the price consumers will pay, I can apply these principles to my own business. In order to maximize my profits, I will survey potential clients to determine what they are willing to pay for the products and services that I offer. By closely monitoring the changes in my industry, such as technological advancements or competition, I can also adjust my prices accordingly to ensure that my business is competitive with others.
By understanding supply & demand dynamics , I am better equipped upon making informed decisions when it comes time for setting prices . It also helps me to identify new market opportunities and maintain a healthy growth rate for my business.