A retail business must strike a compromise between two main factors when setting an item's price. what are these two main factors?

The amount that consumers are willing to pay and a reasonable margin are both factors that must be considered. If the price is too high, the number of sales will decline because less customers will purchase the item. But if the profit margin is not sustainable, then the business will suffer from low profitability, which could put the retail business success and longevity at jeopardy.