Don't Just Set Prices, Manage Them Strategically

From Marketing Management

Many companies set their prices without doing anything to manage the pricing environment. They set list prices based on their own needs and then adjust transaction prices based on what customers say they're willing to pay.

Only a few exceptional companies question why someone is willing to pay no more than a particular amount or how that willingness could be changed. Consequently, few companies proactively manage their businesses to foster more profitable pricing. The difference between price setting and pricing strategically is the difference between reacting to market conditions and proactively managing them.