Introduction to Product Pricing
The price you charge for your product or service is one of the most important business decisions you make. Setting a price that is too high or too low will – at best – limit your business’ growth. At worst, it could cause serious problems for your sales and cashflow.
If you’re starting a business, carefully consider your pricing strategy before you start. Established businesses can improve their profitability through regular pricing reviews.
There are two crucial points to consider when setting your prices:
- The price and sales levels you need to set to make sure your business is profitable.
- Where your product or service stands compared with your competition.
Continue reading this business advice article and learn:
- The difference between cost and value
- Covering fixed and variable costs
- Cost-plus versus value-based pricing
- How to build a Product pricing strategy
- Different pricing tactics
- Raising or lowering prices
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