This document discusses pricing strategies and factors that affect pricing. It outlines several pricing policies including cost-based pricing, buyer-based pricing, and competition-based pricing. It also discusses strategies for pricing new products and product mixes. The key points are that price brings in revenue, is determined by both costs and perceived value, and should position the product's value in the market. An optimal price minimizes costs, optimizes margins, and maximizes profits by expressing the true value to customers.