Welcome to the First of our Summer Business Series: Pricing

So what is the price of success?

You have to do your research to determine what is the most appropriate price that you need to charge to not only be competitive, but to make a profit. Consider how much it cost you to bring your product from the manufacturer to your consumer. That process is called, “Cost of Goods Sold”.

If it is a service that you provide, then you must figure out what fees are related to you delivering your service to your clients.

You can check to see how much your competitors are charging, or you can just determine how much you want to make and base your cost on your preferred profit margin. You can also determine your price base on how you want position yourself.

Do you want to be known for charging low prices, or is your brand high-end?

It is not a good idea to overcharge. You can lose business if clients feels that you are trying to take advantage of them.

Just is as it is detrimental to overcharge. Undercharging can be detrimental to your bottomline. Prospective clients/customers may also think that you are a laymen at what you do if you are not charging enough; especially if it is below the industry standard.

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