Do you base it on time, cost or value?
What do you do?Pricing is important no matter what your business and you have a lot to consider when setting your price.
- What are your actual costs?
- Do you require any manufacturing?
- Do you employ staff?
- Do you pay for marketing?
- What are your insurance costs?
- How much do you spend on equipment?
Things to considerThink about your target market.
What can they afford? What do they require?
Think about what your product or service gives your customer.
Can they just use it once? Will they make money from it?
You need to think bout the value your product or service gives before you can price it.
Your product may be only single use and very cheap to make, therefore you can't really charge over the odds for it. Whereas if your customers can use your product repeatedly and the manufacturing is expensive then this gives the product more value.
This same approach can be used whether you have a product or service to offer your customers.
Value over PriceDon't undervalue your products or service, you may feel like you are overcharging in your business. However if someone is receiving excellent value over a long term period then you have to consider what they get out of it.
Tips to remember...Make sure you cover your costs
Ensue you make a profit
Review your prices regularly
Remember 'Value' not 'Price'
Happy to helpIf you have any questions or would like help implementing any marketing strategies remember Pzazz
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