How to Price Products and Services

Posted by SummersResearch under Sales
From http://salexanderresearch.com 4147 days ago
Made Hot by: AngelBiz on December 17, 2012 3:45 am

For small business owners determining how to price products and services can be extremely stressful. This article provides six quick steps to help you determine exactly how to price your products and services for maximum profit.

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Comments

Written by Dave Hubbard
4145 days ago

Nice article, Summer. Additionally, if your competitive advantage (e.g. “organic cupcakes”) justifies a higher price than your competition, don’t just change the price tag on your cupcakes. Proactively and prominently promote your value proposition and competitive advantage to increase sales. “We only use organic ingredients in our cupcakes. Organic ingredients often taste fresher because they don’t contain preservatives. Organic ingredients do not contain synthetic fertilizers, fungicides and insecticides . Wouldn’t you rather give your family one of our organic cupcakes?”

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Written by SummersResearch
4145 days ago

Thank you Dave, excellent point. It's not enough for you (the business owner) to know you have a better quality product or a more streamlined process. It's essential that your buyers understand this as well.

I'd love for you to post your comment over on my site as well so that my readers gain the valuable insight you provided. Thanks!

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Written by SummersResearch
4147 days ago

Thank you Heather! Pricing products and services is one of those tricky steps in business planning where I find many business owners guess, compare or pluck a number out the sky.

Hopefully this post will provide some beginning steps to help those entrepreneurs who are struggling in this area make some progress in the right direction.

Happy to have found BizSugar!

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Written by HeatherStone
4147 days ago

Hi Summer,

Thanks for the great overview of something that should definitely be considered by more entrepreneurs. While I think many people do take into account how their prices compare to competitors, too few think about the costs of providing their products or services...and maybe the actual value to customers. These are very important things to consider when trying to figure out whether you've got a viable business model. Thanks for sharing your post with the BizSugar community!

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