BizSugar.com › Finance › What to consider when pricing business' products and services

There's little room for error when it comes to pricing your business' products or services. If you set prices too high, you risk scaring off new customers, but if you set them too low you may not make enough money to survive the long haul.

The key is to strike the right balance between being competitive and being profitable, and that means doing your due diligence, say pricing experts.

"Numbers really do make or break a business," says Pam Newman of RPPC Inc., a Kansas City, Mo.-based accounting consulting firm. "Ninety percent of the time when a company goes out of business it's not because they don't have a good product or service, it's because they don't know their profitability or numbers."