Pricing is important in an industry. The ultimate point that forms the deciding factor in a quotation is the price.

The customer's cynosure of attraction is the pricing of the product.

The factors that we look into while pricing the product are :

• Raw Material cost
• Machining cost - Drilling cost
  - Grinding cost
  - Milling cost
  - Welding cost
  - Finishing cost
• Testing and Inspection cost
• Labor charge
• Miscellaneous Expenses - Transportation charge
  - Painting cost
  - Tax Profit Percentage

The cost incurred at different stages of production is included in arriving at the price of the final product. The price also includes the profit margin. The pricing also varies depending on the customer and the number of orders placed. Competition is also factor to be taken into account while pricing the product. We come across the competitor while applying for quotations of the tenders. During this period the profit percentage is altered (or reduced) to grab the contract.