What do you understand by upper and lower threshold in pricing methodologies?

In pricing methodologies, the upper threshold refers to the maximum price a customer is willing to pay for a product or service, often influenced by perceived value, competition, and market conditions. The lower threshold, on the other hand, indicates the minimum price necessary to cover costs and ensure profitability. Understanding these thresholds helps businesses set optimal pricing strategies that balance profitability with customer demand, maximizing revenue without alienating potential buyers.