A company pricing strategy is the practice of setting prices for products and services based on a multitude of factors, such as cost of production, competition, market dynamics, customer buying habits and even cultural norms. This includes both short-term tactics used to make quick pricing decisions for specific products or markets, as well as long-term strategies that establish pricing policies for the company’s entire portfolio over time. Companies use their pricing strategy to manage costs, drive sales and boost profits, making it one of the most important parts of any successful business.