- 1). Determine the budget that your company needs to run, your field's market demands and your company's overall goals. If your company is interested in market shares, for example, you may be able to price your products lower and offer incentives. But if your company wants profits immediately, you'll want to price your products a bit higher.
- 2). Look at the pricing of your competitors. Your customers will be doing the same thing. You can figure out if your pricing is fair if it falls in the same pricing area of your competitors. If your products are more valuable than most of your competitors' products, then your pricing can be on the higher end. If you offer fewer services while still selling a quality product, you can price on the lower end.
- 3). Research your market. There are several ways to do this. You can e-mail surveys to your current customers. You can hire a market research firm to, among other things, separate your customer base by demographics, which products they buy, and if they're price-sensitive.
- 4). Determine the cost of distribution of your product, which will have to be factored into the total cost of the product.
- 5). Ensure that your business will be able to profit somewhat from your pricing. How much your company will profit will rely on your business's goals. Your overhead costs, or the costs of the product, factor in more than simply the product itself; they also include shipping and stocking costs.
previous post
next post