Deciding on the appropriate prices for your products and services should complement your overall business strategy to sustain and grow your business. There are various pricing techniques to choose from and some of the most widely used are penetration pricing, value- add pricing, price skimming, competitive pricing, and dynamic pricing. Business owners must understand the value of their offerings in order to communicate and justify the prices for their products and services. Utilization of appropriate price strategies is overlooked by companies and can result in loss of customers and eroding profit margins. You must understand your costs thoroughly to determine the flexibility to change prices. In today’s environment of steady price increases on everything from gasoline to products, you need to avoid the temptation to enact price changes immediately without thought to the overall business impacts.