The price is a fundamental part of the profit, but it is very delicate because it is the company’s interface with the client
In the business world, the objective is to make a profit. Each entrepreneur pursues their own income, juggling a series of variables: the fixed costs of production, the additional costs, the units sold and the set price.
In a 1992 study, Michael V. Marn and Robert L. Rosiello calculated that a 1% improvement in spending, or an increase in sales - again by 1% - would guarantee a higher profit, but a price increase of the same small percentage would offer an even greater reward.
So we can surmise that price is a fundamental factor, but it must be treated with great care, because it represents a direct interface with customers: how might they react if it changes?
According to the neoclassical theory, the more the price increases, the less a person will be interested in buying an item. In reality, the behaviour of individuals can be influenced by many other stimuli.