PriceAlmost everyone agrees that the price of the product or service is a key factor in the decision to buy. Price affects both sales volume and profits, and without the right price, both sales and profits will suffer. As we will see in Chapter 11, “Pricing and Credit Strategies,” the right price for a product or service depends on three factors: (1) a small company’s cost structure, (2) an assessment of what the market will bear, and (3) the desired image the company wants to create in its customers’ minds.For many small businesses, nonprice competition, focusing on factors other than price, is a more effective strategy than trying to beat larger competitors in a price war. Nonprice competition, such as free trial offers, free delivery, lengthy warranties, and money-back guarantees, intends to play down the product’s price and stress its durability, quality, reputation, or special features.