of their industry. Companies with lowerÂ
costs can charge lower prices, resulting inÂ
lower margins but higher sales and profits.Â
However, other companies such as Apple,Â
BMW and Steinway deliberately payÂ
higher fees to be able to achieve higherÂ
prices and margins. For example,Â
"homemade" Steinway pianos cost moreÂ
than Yamaha production models. But theÂ
higher cost makes for better quality.
Pricing is based on valueÂ
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