Price is one of the elements of marketing mix which practices revenue. It is very crucial as the prime mover of trade in any market economy where goods and services are traded. one can conclude that price is one variable that is very important to both the buyer and the seller. (Boniface et al, 2007).

According to Agbonifoh et al (1998), price is the monetary value for which the seller is willing to exchange the item, also they defined/price as what a buyer gives in return for it. 

Price since history has remained a major determinant of buyer choice. Price is one of the most flexible elements that can be changed quickly and still remains one of the most important element in determining market share and profitability (Anuforo and Boniface, 2013).

Pricing is the process of determining price or product companies handle pricing in a variety of ways. For small companies, prices are often assessed by company’s boss. The is different for large companies where pricing is handled by a division and product-line managers. Here the top management sets the general pricing objects, policies and often approves proposed prices from the lower level management. Companies often establish a pricing department. The aim is to assist management in price setting and implementing appropriate price. (Agbanifoh et al, 1998).

Different people have different names for their price. The local utility will give its rise as rate, the insurer will give its price as premium, and the employer will give his price as salary/wages. Price for education is tuition, while price for telephone service is bill.

From the above, one may wonder what determines the price of a product or service. They include: 

• Cost of production of the product. 

• Competition. 

• Ability and willingness of buyer to pay for the product.

• Government legislation.

Many companies do not handle pricing well as price competition is the number one problem facing them. The most common mistake or misconceptions made by companies are:

 Price is too cost-oriented.

 Price is not revised often enough to capitalize on market changes.

 Price is set independent of the rest of marketing mix rather than as an intrinsic element of market positioning strategy.

 Price is not varied enough for different product items, market segments and purchase occasions.

For pricing to be useful as a strategy, Nigeria Breweries Plc established its pricing policies within the content of a carefully structured set of pricing objectives. This is because failure to coordinate pricing policies with the over-all objectives of pricing often lead to a reduction in profitability.

Achieving set objectives are the major aims or purposes of all business organization's especially the profit oriented ones. These objectives include:

a.   Marketing profits.

b.   Remaining in business.

c.   Competing favorably with other firms that are in the same line of business.

For an organization to achieve these objectives, it must embark on the development of a structure and design a programme which would facilitate effective and efficient accomplishment of the set objectives. The above can only be achieved by having a good pricing strategy.

An organization with a good pricing strategy, objectives policies and methods stand a better chance of making a lot of profit and its product will live longer in the market so long as its strategies does not negatively affect it.