Cost factors

Whenever one entrepreneur does a business, his or her final goal is having benefit. No one wants his business go bankrupt. Because of various competitiors in the market, entrepreneurs should have put a competitive price to their products. So quite often, one pricing decision can be decided after many rigorous research and discussion. The best price is always the one that provides you with the most long-term profits. Price in terms of value rather than cost. Cost-plus pricing is worst choice. When you start pricing more intelligently, you will have a real advantage over most of your competitors. There are severals factors that has affected the pricing desicion of a company, for example Adidas. The primary concern they have to notice first is the cost of production. As you can know, nearly all lines of manufacturing of Adidas are automatic and for each month they have to pay for a fee for taking care of machines.
For each segment of customer, Adidas has their suitable products and price also. They have different level of product's price. With normal shoes , sneakers or shoes for working class, price is very acceptable. Contrary, sneakers for sport ålayers are much more expensive. You can not sell one pair of sneakers for a little child or adult for 1 or 200euros like the one for pro players.
Another aspect the producers have to take into concern is competition. Your competitors are smart and flexible enough to have some adjustment in their products.
In my character's situation, he wanted to buy an outdoor pair of sneakers. Due to his purpose, the sneakers should has nice appearance, up to date not so obsolete and acceptable price.

Shoes of Adidas are suitable for several different kinds of customers. There are snearkers with high price and also ones with lower price. They combine competition-based pricing with marketing-oriented pricing together. They know that Nike,Puma or other sneakers brand name would try to gain a benefit from lowering pirce fo suiting to customers' pockets.