Which factor is NOT typically considered in the pricing function?

In the pricing function, various factors contribute to determining the optimal price for a product or service. While employee wages are certainly an essential part of a company's overall expenses, they are not typically a direct factor in the pricing strategy itself. Pricing decisions are primarily influenced by factors more closely aligned with market conditions and business costs.

Cost and expenses are crucial as they directly affect the minimum price at which a product can be sold to ensure profitability. Consumer perceptions play a key role as they influence how much customers are willing to pay. Competitive pricing is also significant, as businesses must consider their competitors' pricing strategies to remain competitive in the market.

In contrast, employee wages represent part of the operational overhead but do not directly determine the selling price of a product or service itself. Therefore, while they are important for assessing overall profitability and sustainability, they are not typically factored into the strategic pricing decisions in the same way that cost, consumer perceptions, and competition are.