Setting prices for your product or service is an inexact science. I think the guesswork that goes into setting prices also makes it tempting to leave prices unchanged for too long. But leave them too high and you lose customers. Leave them too low and you lose margin. Two questions to ask when prices might be out of date:

1. Have my costs changed? This changes your minimum profitable price.

2. Have my customers’ alternatives changed? This changes your maximum marketable price.

In a typical business, prices should probably be evaluated once or twice a year.