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How do I price my products and services?

As a mentor this is a question that I receive a lot! I have created a video so that the information can be made available to all that have the question and need a clearly defined and thoughtful answer. To view the video:https://youtu.be/5bM5C_Bl33E.

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22 answers

Depending on your market research

Report Ahmed's answer

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First you research your competition. If your competition doesn't freely list their pricing, then you pretend you're interested in buying with them and you give them enough information to contact you but that's all. Once you gather some of their pricing you use it as a template to create yours. You must include Margin as reference above by Sumona. But the amount of margin you add has got to based on what your expenses are and on what your sales revenue needs to be depending on what your business plan says. Margin is important to keep you competitive in the industry, but you do not need to be the least costly product. Remember that product value outweighs product cost. If your competition doesn't exist and you've created a new niche, then look at the pricing of products in niches that near to yours and then follow your business plan. If you don't have a business plan, I can help you create one. Hope that helps.

Report Adam's answer

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It starts with researching the market, know your competitors, demand and supply. 1) How much time, materials and expenses does it cost you to make and sell 1 unit? What is your break even point? What are your desired profits? What is the current cost of a similar product/service?

Do the math early and financial calculations in your business plan: The formula for calculating net income is: Revenue – Cost of Goods Sold – Expenses = Net Income. Gross income – Expenses = Net Income. Total Revenues – Total Expenses = Net Income. Net Income + Interest Expense + Taxes = Operating Net Income. Gross Profit – Operating Expenses – Depreciation – Amortization = Operating Income.

Report E-le-tha's answer

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Be consistent with your booking keepings and then use that to price your services and product Your cash flow and cash out is very important that will help a lot

Report MEGA CULINARY AND DECOR's answer

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Your marketing research, after knowing what your competitor fixed their price you might reduced it little bit.

Report Goodluck's answer

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Pricing is very sensitive issue and it requires great care, it is the core competition issue, but you could base your price * Based on your cost * Based on your customers demands, or * Based on your competitors You could choose your method but to penetrate the market there are two methods Price Skimming and Price loafing If the nature of your product/service demand is elastic it is recommended to charge a lower price, but if your product is inelastic it is recommended a fair price based on the above factors

Report ADDISU's answer

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To price your products and services you have to be able to separate your production cost, We have two costs in all the processes. The first one is the fixed cost and this cost will be always the same that you will divide by the production units or service times to find your fixed cost by unit, This cost will be lower if you give more service or you produce more units, the second one is the variable cost and this cost varies in accord to the units you produce or services you give. Is important to have both costs to star because if you put these costs in an xy table you will be able to see how many units you have to produce or services you have to give to see in accord to your prices when you will start earning money. The price has to have fixed cost + variable cost + profit

Report Pablo's answer

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Pricing a product based should be on its value, rather than solely on a cost-plus approach. This involves a strategy that focuses on the perceived worth of the product to the customer rather than just the cost of production plus a markup. Here's how you can approach this:

  1. Understand Your Customer's Perception of Value: Research and understand what aspects of your product are most valued by your customers. This could be anything from quality, brand reputation, unique features, convenience, or customer service. The key is to identify what makes your product valuable in the eyes of your target market.

  2. Analyze the Market and Competitors: Look at how similar products are priced in the market. Understand your competitors' value propositions and how your product differs. This will help you position your product in a way that highlights its unique value.

  3. Segment Your Market: Different customer segments may perceive the value of your product differently. Identify these segments and consider varying your pricing strategy to match their perceived value. For example, a premium version could be offered at a higher price to those who value additional features or quality.

  4. Consider the Entire Customer Experience: Value-based pricing isn’t just about the product; it's also about the overall experience. This includes pre-sale interactions, customer service, after-sale support, and the brand experience. Enhancing these aspects can justify a higher price point.

  5. Set a Price Based on Value Delivered: Based on your understanding of the value your product offers, set a price that reflects this value. This might mean pricing your product higher than the cost-plus price if your product offers significant value to the customer.

  6. Test and Get Feedback: Implement the pricing and gather feedback from customers. Monitor sales, customer satisfaction, and market response. Be prepared to adjust your pricing strategy based on this feedback.

  7. Communicate the Value: Ensure that your marketing and sales efforts effectively communicate the value that justifies your pricing. Customers should clearly understand why your product is priced the way it is and what benefits and value they will gain from it.

  8. Monitor and Adjust Regularly: The perceived value of your product can change over time due to market trends, new competitors, or changes in customer preferences. Regularly review and adjust your pricing strategy to ensure it remains aligned with the value perceived by your customers.

Remember, in value-based pricing, the focus is on the customer's perception of value, which can be subjective and vary widely. It's crucial to have a deep understanding of your customers and continuously engage with them to ensure your pricing reflects the value they perceive in your product.

Report Henry's answer

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To make sure your pricing represents the value your customers see in your product, it's imperative to get to know them well and stay in constant communication with them. ragdoll archers

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If you are wondering about the price of any of your products, I will guide you. And let me tell you about the outfit and tell you about such a site where you can get Drake Polar Opposites Red Leather Jacket outfit at a very low cost.

Report Heather's answer

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