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: Value
Get Multiple Profit Sources
It’s an old saying, but couldn’t be more true today – Don’t Put All Your Eggs in One Basket While the quote suggests putting your eggs into multiple baskets, another idea is to have more than just eggs in your basket. In other words, diversify your business. To generate the …more
