Figuring Out Price
Figuring out price can be tricky. Price is the amount of money, time and other resources your customer has to invest in order to gain a benefit from your product or service. Choosing what price you’ll charge for your product/service isn’t easy, as you must consider many factors. Your price should:
- Offer value to your customers while letting you make a profit.
- Be reasonable. If you price too high, you risk thinking that your product or service is worth that amount and you might price yourself out of the market. If you price too low, your product or service may not be perceived as good quality and you walk away from significant profit.
- Be something that you think about carefully, and not just set arbitrarily.
Topic Objective: Review pricing options, from cost plus and competitive pricing, to willingness to pay.
Your Outcome: Have a pricing strategy and a price specified.