Product Pricing

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:

1. The price and sales levels you need to set to make sure your business is profitable.
2. 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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