You must set the price of your Red Ocean product at the beginning of each year. This is the price at which you sell your product to distributors. All distribution channels apply the same margin to all competing products.
Dumping is strictly forbidden in the BOSS world. Therefore, the price of a product must be equal to or higher than its unit production cost. Finally, price changes greater than plus or minus 30% in one year are highly discouraged as they often result in negative market reactions. If there is a sudden and steep increase in price, customers may react strongly and stop purchasing the product. On the other hand, if there is an excessive price decrease, the distributors’ margins will also decrease and your salespeople may have a hard time finding distributors for the product. An error message will warn you when such decisions are made.