Pricing Your Product

Three-Prong-Pricing-Stickman

  1. Know the market.
  2. You need to find out how much customers will pay, as well as how much competitors charge.
  3. Choose the best pricing technique.
  4. Work out your costs.
  5. Consider cost-plus pricing.
  6. Set a value-based price.
  7. Think about other factors.
  8. 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.
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