Tag Archives: pricing

Calculating Your Price Points: Bringing It All Together

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IMG_2329Once you find a price point that fits, it’s time to do a little test marketing. This doesn’t need to be an elaborate process. You can easily test the price simply by talking to trusted friends, colleagues and advisors. Anyone who you can trust to give you candid advice is an ideal person to bring into the discussion.

Early on, as you tried to find the right price for your product, you might have asked those same people a fairly nebulous question like “What would you pay for this product?” or “How much should I charge for my service?” The more people you ask, the wider the range of feedback you tend to get. Continue reading →

Calculating Your Price Points: Competitor Matrix & Finding What’s Missing

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Image source: https://www.flickr.com/photos/veganfeast/

Image source: https://www.flickr.com/photos/veganfeast/

Pricing doesn’t happen in a vacuum. Unless you’re in that enviable position of being a true innovator in a completely untapped market, or you have a uniquely unfair advantage when it comes to cost, your prices points will be heavily influenced by your competition. The more homework you do on your competitors, the more insight you’ll have when it comes to finding the correct price for your product or service. Continue reading →

Calculating Your Price Points: Considering Costs

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Image source: https://www.flickr.com/photos/peasap/

Image source: https://www.flickr.com/photos/peasap/

When it comes to determining the price for your product or service, cost is the obvious starting point. It’s only after you have your costs completely nailed down that you can really start to make serious plans for pricing. With a clear understanding of your costs, you can quickly react to changes that impact your bottom line, such increased costs for raw materials or bringing on new employees.

On a basic level, costs are easy to identify. For instance, let’s say your company is a bakery that makes organic cookies and snacks. Ingredients will be one of your most obvious costs. It’s fairly easy to work out your per-unit needs for each ingredient, and to scale that up to the bulk price your supplier will charge. Continue reading →