- Know the market.
- You need to find out how much customers will pay, as well as how much competitors charge.
- Choose the best pricing technique.
- Work out your costs.
- Consider cost-plus pricing.
- Set a value-based price.
- Think about other factors.
- Stay on your toes.
Since pricing decisions require time and market research, the strategy of many business owners is to set prices once and “hope for the best.” However, such a policy risks profits that are elusive or not as high as they could be.
When is the right time to review your prices?when
- You introduce a new product or product line
- Your costs change
- You decide to enter a new market
- Your competitors change their prices
- The economy experiences either inflation or recession
- Your sales strategy changes
- Your customers are making more money because of your product or service.