Price is the money or other considerations (such as barter)

exchanged for the ownership or use of a product or service.

Although price typically involves money, the amount exchanged is often different from the list or quoted price because of incentives

(rebates, discounts, etc.), allowances (trade), and extra fees (finance charges, surcharges, etc.).

Demand, cost, profit, and competition influence the initial consideration of the approximate price level for a product or service. Demand-oriented pricing approaches stress consumer demand and revenue implications of pricing and include seven types: skimming, penetration, prestige, odd-even, target, bundle, and yield management. Cost-oriented pricing approaches emphasize the cost aspects of pricing and include two types: standard markup and cost-plus pricing. Profitoriented pricing approaches focus on a balance between revenues and costs to set a price and include three types: target profit, target return-on-sales, and target return-on-investment pricing. And finally, competition-oriented pricing approaches stress what competitors or the marketplace are doing and include three types: customary; above-, at-, or below-market;

and loss-leader pricing.