The prices you charge for your products (or services) greatly affects your company’s growth, and ultimately profit. Pricing impacts your image – it will lure some customers to your business and drive others away. Pricing is inter-dependent on several factors: Your Market – not only geographically, but also product type Your Competition – upscale specialty stores have a different strategy than discount retailers Your Costs – a certain percentage mark-up may not work if you’re selling more in quantity without changes in overhead There are many variables to consider when setting a price, and it must be adjusted as times change. You have to remember the standard economic formula of Supply = Demand. You can charge whatever price the market will bear. That sounds like a very obvious statement and one that is difficult to achieve. Let’s see if we can think about this and make it clear. Let’s use …more
Tag: Budget
Streamline Your Operations
Do you have a procedure manual? One way to increase your profits is to find efficiencies in your operations. I know it may be difficult to put together that “How To” book, but it will be worth the effort. If you already have a manual, this is the time to …more
