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ISSN 2063-5346
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THE EFFECT OF PRICING POLICIES ON A FIRM PROFIT (A CASE STUDY OF GHANAIAN FIRMS)

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Edward Attah-Botchwey,Kofi Kodua Sarpong,Paul Muda, Joshua Kweku Opeku Stephanie Amoah
» doi: 10.31838/ecb/2023.12.sa1.248

Abstract

Firms today are constantly looking for innovative ways of achieving profitability. The quest for maximizing profit in these volatile markets is of paramount importance to competing firms. Organizations achieve profitability by adjusting prices to the dictates of market condition and stated objectives of firms. Adjustment made to prices ensures that firms boost market shares, reduces cost of production, and achieve competitiveness over rivals. Prior studies indicated that pricing is a vital element of the marketing mix that influences production cost and profitability in the short term. However a wrong approach to pricing would mean loss of profitability and eventual collapse of the business. The purpose of project is to analyze the effect of pricing policies on Transmed Ghana limited profitability. the study found that the major consideration in determining prices of goods at Transmed Ghana limited are Taxation, Company’s Objective, and Cost of Production. This consideration is premise of cost considerations. However Transmed still faces challenges in the area of not enough research or survey on pricing, grey import, high tax rate, suppliers pricing, high interest rate, high exchange rate differentials, and importation of substitutes

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