This document discusses costing and pricing strategies for businesses. It defines different types of costs like direct, indirect, fixed and variable costs. It also explains how to calculate the cost per unit of production and break-even point. The document then discusses various pricing strategies like premium pricing, penetration pricing, price skimming, economy pricing and psychological pricing. It emphasizes the importance of understanding costs and setting the right price point to maximize profits.
Why is this book so important? One of the biggest lessons I have learned within the startup landscape is that even though pricing, together with the business model, remains by far the lever that most impacts revenue, the subject is a sensitive one.
Pricing is a strong — but often underused — tool available to capture a share of value created for customers
Pricing is one of the biggest challenges that startup face. The book is a practical toolkit that positively influences the pricing strategies of startups. It reveals insights in the different pricing methods and tactics used by successful companies.
Anyone who does not include “profit” in their definition of brand likely has never run a brand before. To me, a product is the basic commodity you sell but a brand creates a bond, with the intention of achieving a power and profit beyond what the product alone could achieve. The only reason you would ever add more investment to create a brand is because you believe you can get more back from that investment than just selling the product. If you wish to succeed in Brand Management, you have to understand brand finance. After all, you are running a business. If you started your brand to fulfill a personal passion or promise, I will tell you that a profitable brand will allow you to fulfill a lot more promises. If you just like the activity of Marketing, then you should become a subject matter expert, not in charge of a branded business.
Why is this book so important? One of the biggest lessons I have learned within the startup landscape is that even though pricing, together with the business model, remains by far the lever that most impacts revenue, the subject is a sensitive one.
Pricing is a strong — but often underused — tool available to capture a share of value created for customers
Pricing is one of the biggest challenges that startup face. The book is a practical toolkit that positively influences the pricing strategies of startups. It reveals insights in the different pricing methods and tactics used by successful companies.
Anyone who does not include “profit” in their definition of brand likely has never run a brand before. To me, a product is the basic commodity you sell but a brand creates a bond, with the intention of achieving a power and profit beyond what the product alone could achieve. The only reason you would ever add more investment to create a brand is because you believe you can get more back from that investment than just selling the product. If you wish to succeed in Brand Management, you have to understand brand finance. After all, you are running a business. If you started your brand to fulfill a personal passion or promise, I will tell you that a profitable brand will allow you to fulfill a lot more promises. If you just like the activity of Marketing, then you should become a subject matter expert, not in charge of a branded business.
Break Even PointsRevenue and Expenses DriversOpening (Total) Cost$.docxjackiewalcutt
Break Even PointsRevenue and Expenses DriversOpening (Total) Cost$500,000Opening Cost Per Unit$25Total Variable Cost$603,301Number of Units20000Cost per Unit=(Total fixed costs + Total variable costs) ÷ Total units producedCost Per Unit=$55.17Breaking Even Point=Fixed Cost/(Sales price-Variable Cost)Breaking Even point value=$21.30Breaking Even Point in Units= Fixed Cost/Margin per UnitBreaking Even Point in Units=3.125Breaking Even Point in Dollars=Sales price per unit x Breaking Even point per UnitBreaking Even point for dollars=$1,175.00The Business has a starting input of $500,000In the worst case, discount is high and taxes are high too. Labor and all other expenses remain contant or go higher than usual business. In the best case, there is lower discount, lower taxes and expences, e.g. labor are lower.
Business Case ScenarioBusiness Case Cash Flow for Usual Business CaseCASH FLOW PROJECTIONS Jan2019Number of Units20000CASH REVENUE (In)Fixed Price per unit$25Opening Balance$500,000Price Per Unit (Usual Business)$47.11 Revenue from Product Sales$942,107 Revenue from Service Sales$300,782TOTAL CASH REVENUES$1,742,889CASH DISBURSEMENTS (Out)Facuility Setup$150,000Procurement$100,000 Cash Payments to Trade Suppliers$78,968 Management Draws$33,469 Labour$398,778 Promotion Expences Paid$227,099 Professional Fees Paid$15,986 Rent/Mortgage Payments$0 Insurance Paid$9,380 Telecommunications Payment$25,039 Utilities Payments$100,859TOTAL CASH DISBURSEMENTS$1,139,578CASH FLOW$603,311OPENING CASH BALANCE$0CLOSING CASH BALANCE$603,311
Worst Case ScenarioBusiness Case Cash Flow For Worst Case ScenarioCASH FLOW PROJECTIONS Jan2019Units20000CASH REVENUE (In)Fixed Cost Per Unit$25Doscount Rate10%Variable Cost$30.17Opening Balance$603,311 Revenue from Product Sales$942,107 Revenue from Service Sales$300,782TOTAL CASH REVENUES$1,846,200Total after discount (NPV)$1,818,310CASH DISBURSEMENTS (Out)Facuility Setup$150,000Procurement$100,000 Cash Payments to Trade Suppliers$78,968 Management Draws$33,469 Labour$398,778 Promotion Expences Paid$227,099 Professional Fees Paid$15,986 Rent/Mortgage Payments$0 Insurance Paid$9,380 Telecommunications Payment$25,039 Utilities Payments$100,859Taxes (16%)$290,929.66TOTAL CASH DISBURSEMENTS$1,430,508CASH FLOW$415,692OPENING CASH BALANCE$0CLOSING CASH BALANCE$415,692
Best Case ScenarioBusiness Case Cash Flow For Best Case ScenarioCASH FLOW PROJECTIONS Jan2019Units20000CASH REVENUE (In)Cost per Unit$25Doscount Rate5%Variable Cost38.1702705985Opening Balance$603,311 Revenue from Product Sales$942,107 Revenue from Service Sales$300,782TOTAL CASH REVENUES$1,846,200Total after discount (NPV)$1,832,166CASH DISBURSEMENTS (Out)Facuility Setup$150,000Procurement$100,000 Cash Payments to Trade Suppliers$50,968 Management Draws$33,469 Labour$298,778 Promotion Expences Paid$127,099 Professional Fees Paid$15,986 Rent/Mortgage Payments$0 Insurance Paid$9,380 Telecommunications Payment$25,039 Utilities P.
All of these questions are answered I just need you to read the an.docxnettletondevon
All of these questions are answered I just need you to read the answers, understand them and paraphrase them in your own way with keeping the same idea. Just rewrite it with the same idea but in a different phrase than these.
Essay Questions:
1. Identify and discuss reasons why firms become so infatuated with pricing. Why is pricing given a great deal of attention?
Answer/ ANS:
There is no other component of the marketing program that firms become more infatuated with than pricing. There are at least four reasons for the attention given to pricing. First, the revenue equation is pretty simple: Revenue equals the price times quantity sold. There are only two ways for a firm to grow revenue: increase prices or increase the volume of product sold. Rarely can a firm do both simultaneously. Although there are literally hundreds of ways to increase profit by controlling costs and operating expenses, the revenue side has only two variables—one being price and the other being heavily influenced by price.
A second reason that firms become enamored with pricing is that it is the easiest of all marketing variables to change. Although changing the product and its distribution or promotion can take months or even years, changes in pricing can be executed immediately in real time. Likewise, product, distribution, or promotion changes can also be quite expensive, especially if research and development (R&D) or production must be rescheduled. Conversely, changing prices is a very low-cost option.
The third reason for the importance of pricing is that firms take considerable pains to discover and anticipate the pricing strategies and tactics of other firms. Salespeople learn to read a competitor’s price sheet upside down at a buyer’s desk. Retailers send “secret shoppers” into competitors’ stores to learn what they charge for the same merchandise. In this age of e-commerce, tracking what competitors charge for their goods and services has become so daunting that an entire price-tracking industry has emerged.
Finally, pricing is given a great deal of attention because it is considered to be the only real means of differentiation in mature markets plagued by commoditization. When customers see all competing products as offering the same features and benefits, their buying decisions are primarily driven by price.
Having a solid understanding of these issues is important because far too many firms and their managers use a seat-of-the-pants approach to pricing by guessing the best price for their goods and services. Guessing is never a good strategy in marketing; it can be downright deadly when it comes to setting prices.
2. In many (if not most) circumstances, cutting prices to increase sales volume is not a good idea. Explain why this is so. What are some alternatives that are preferable to cutting prices?
Answer/ ANS: All marketers understand the relationship between price and revenue. However, firms cannot charge high prices without goo.
Professional Pricing Society (PPS) - First Steps to Pricing ManagementJames (JD) Dillon
Given at the Spring 2016 PPS Conference, this presentation describes how to gain credibility and impact an organization when initially given the charge of owning a pricing function.
Break Even PointsRevenue and Expenses DriversOpening (Total) Cost$.docxjackiewalcutt
Break Even PointsRevenue and Expenses DriversOpening (Total) Cost$500,000Opening Cost Per Unit$25Total Variable Cost$603,301Number of Units20000Cost per Unit=(Total fixed costs + Total variable costs) ÷ Total units producedCost Per Unit=$55.17Breaking Even Point=Fixed Cost/(Sales price-Variable Cost)Breaking Even point value=$21.30Breaking Even Point in Units= Fixed Cost/Margin per UnitBreaking Even Point in Units=3.125Breaking Even Point in Dollars=Sales price per unit x Breaking Even point per UnitBreaking Even point for dollars=$1,175.00The Business has a starting input of $500,000In the worst case, discount is high and taxes are high too. Labor and all other expenses remain contant or go higher than usual business. In the best case, there is lower discount, lower taxes and expences, e.g. labor are lower.
Business Case ScenarioBusiness Case Cash Flow for Usual Business CaseCASH FLOW PROJECTIONS Jan2019Number of Units20000CASH REVENUE (In)Fixed Price per unit$25Opening Balance$500,000Price Per Unit (Usual Business)$47.11 Revenue from Product Sales$942,107 Revenue from Service Sales$300,782TOTAL CASH REVENUES$1,742,889CASH DISBURSEMENTS (Out)Facuility Setup$150,000Procurement$100,000 Cash Payments to Trade Suppliers$78,968 Management Draws$33,469 Labour$398,778 Promotion Expences Paid$227,099 Professional Fees Paid$15,986 Rent/Mortgage Payments$0 Insurance Paid$9,380 Telecommunications Payment$25,039 Utilities Payments$100,859TOTAL CASH DISBURSEMENTS$1,139,578CASH FLOW$603,311OPENING CASH BALANCE$0CLOSING CASH BALANCE$603,311
Worst Case ScenarioBusiness Case Cash Flow For Worst Case ScenarioCASH FLOW PROJECTIONS Jan2019Units20000CASH REVENUE (In)Fixed Cost Per Unit$25Doscount Rate10%Variable Cost$30.17Opening Balance$603,311 Revenue from Product Sales$942,107 Revenue from Service Sales$300,782TOTAL CASH REVENUES$1,846,200Total after discount (NPV)$1,818,310CASH DISBURSEMENTS (Out)Facuility Setup$150,000Procurement$100,000 Cash Payments to Trade Suppliers$78,968 Management Draws$33,469 Labour$398,778 Promotion Expences Paid$227,099 Professional Fees Paid$15,986 Rent/Mortgage Payments$0 Insurance Paid$9,380 Telecommunications Payment$25,039 Utilities Payments$100,859Taxes (16%)$290,929.66TOTAL CASH DISBURSEMENTS$1,430,508CASH FLOW$415,692OPENING CASH BALANCE$0CLOSING CASH BALANCE$415,692
Best Case ScenarioBusiness Case Cash Flow For Best Case ScenarioCASH FLOW PROJECTIONS Jan2019Units20000CASH REVENUE (In)Cost per Unit$25Doscount Rate5%Variable Cost38.1702705985Opening Balance$603,311 Revenue from Product Sales$942,107 Revenue from Service Sales$300,782TOTAL CASH REVENUES$1,846,200Total after discount (NPV)$1,832,166CASH DISBURSEMENTS (Out)Facuility Setup$150,000Procurement$100,000 Cash Payments to Trade Suppliers$50,968 Management Draws$33,469 Labour$298,778 Promotion Expences Paid$127,099 Professional Fees Paid$15,986 Rent/Mortgage Payments$0 Insurance Paid$9,380 Telecommunications Payment$25,039 Utilities P.
All of these questions are answered I just need you to read the an.docxnettletondevon
All of these questions are answered I just need you to read the answers, understand them and paraphrase them in your own way with keeping the same idea. Just rewrite it with the same idea but in a different phrase than these.
Essay Questions:
1. Identify and discuss reasons why firms become so infatuated with pricing. Why is pricing given a great deal of attention?
Answer/ ANS:
There is no other component of the marketing program that firms become more infatuated with than pricing. There are at least four reasons for the attention given to pricing. First, the revenue equation is pretty simple: Revenue equals the price times quantity sold. There are only two ways for a firm to grow revenue: increase prices or increase the volume of product sold. Rarely can a firm do both simultaneously. Although there are literally hundreds of ways to increase profit by controlling costs and operating expenses, the revenue side has only two variables—one being price and the other being heavily influenced by price.
A second reason that firms become enamored with pricing is that it is the easiest of all marketing variables to change. Although changing the product and its distribution or promotion can take months or even years, changes in pricing can be executed immediately in real time. Likewise, product, distribution, or promotion changes can also be quite expensive, especially if research and development (R&D) or production must be rescheduled. Conversely, changing prices is a very low-cost option.
The third reason for the importance of pricing is that firms take considerable pains to discover and anticipate the pricing strategies and tactics of other firms. Salespeople learn to read a competitor’s price sheet upside down at a buyer’s desk. Retailers send “secret shoppers” into competitors’ stores to learn what they charge for the same merchandise. In this age of e-commerce, tracking what competitors charge for their goods and services has become so daunting that an entire price-tracking industry has emerged.
Finally, pricing is given a great deal of attention because it is considered to be the only real means of differentiation in mature markets plagued by commoditization. When customers see all competing products as offering the same features and benefits, their buying decisions are primarily driven by price.
Having a solid understanding of these issues is important because far too many firms and their managers use a seat-of-the-pants approach to pricing by guessing the best price for their goods and services. Guessing is never a good strategy in marketing; it can be downright deadly when it comes to setting prices.
2. In many (if not most) circumstances, cutting prices to increase sales volume is not a good idea. Explain why this is so. What are some alternatives that are preferable to cutting prices?
Answer/ ANS: All marketers understand the relationship between price and revenue. However, firms cannot charge high prices without goo.
Professional Pricing Society (PPS) - First Steps to Pricing ManagementJames (JD) Dillon
Given at the Spring 2016 PPS Conference, this presentation describes how to gain credibility and impact an organization when initially given the charge of owning a pricing function.
What are the main advantages of using HR recruiter services.pdfHumanResourceDimensi1
HR recruiter services offer top talents to companies according to their specific needs. They handle all recruitment tasks from job posting to onboarding and help companies concentrate on their business growth. With their expertise and years of experience, they streamline the hiring process and save time and resources for the company.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...BBPMedia1
Marvin neemt je in deze presentatie mee in de voordelen van non-endemic advertising op retail media netwerken. Hij brengt ook de uitdagingen in beeld die de markt op dit moment heeft op het gebied van retail media voor niet-leveranciers.
Retail media wordt gezien als het nieuwe advertising-medium en ook mediabureaus richten massaal retail media-afdelingen op. Merken die niet in de betreffende winkel liggen staan ook nog niet in de rij om op de retail media netwerken te adverteren. Marvin belicht de uitdagingen die er zijn om echt aansluiting te vinden op die markt van non-endemic advertising.
Memorandum Of Association Constitution of Company.pptseri bangash
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
https://seribangash.com/article-of-association-is-legal-doc-of-company/
Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
www.seribangash.com
Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
https://seribangash.com/promotors-is-person-conceived-formation-company/
Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
Kseniya Leshchenko: Shared development support service model as the way to ma...Lviv Startup Club
Kseniya Leshchenko: Shared development support service model as the way to make small projects with small budgets profitable for the company (UA)
Kyiv PMDay 2024 Summer
Website – www.pmday.org
Youtube – https://www.youtube.com/startuplviv
FB – https://www.facebook.com/pmdayconference
The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
Premium MEAN Stack Development Solutions for Modern BusinessesSynapseIndia
Stay ahead of the curve with our premium MEAN Stack Development Solutions. Our expert developers utilize MongoDB, Express.js, AngularJS, and Node.js to create modern and responsive web applications. Trust us for cutting-edge solutions that drive your business growth and success.
Know more: https://www.synapseindia.com/technology/mean-stack-development-company.html
Affordable Stationery Printing Services in Jaipur | Navpack n PrintNavpack & Print
Looking for professional printing services in Jaipur? Navpack n Print offers high-quality and affordable stationery printing for all your business needs. Stand out with custom stationery designs and fast turnaround times. Contact us today for a quote!
What is the TDS Return Filing Due Date for FY 2024-25.pdfseoforlegalpillers
It is crucial for the taxpayers to understand about the TDS Return Filing Due Date, so that they can fulfill your TDS obligations efficiently. Taxpayers can avoid penalties by sticking to the deadlines and by accurate filing of TDS. Timely filing of TDS will make sure about the availability of tax credits. You can also seek the professional guidance of experts like Legal Pillers for timely filing of the TDS Return.
Attending a job Interview for B1 and B2 Englsih learnersErika906060
It is a sample of an interview for a business english class for pre-intermediate and intermediate english students with emphasis on the speking ability.
2. Why do we need
to understand
costs and know our
products pricing?
3. To be ableto….
• Know the correct pricing and to maximize
profit
• Aid in business management decision
making
• Know whether you are profiting or losing
4. What is
cost
• An amount that has to be paid or given up in order
to get something.
• In business, cost is usually a monetary valuation of
• effort
• Material
• Resources
• time and utilities consumed
• risks incurred
• opportunity forgone in production and delivery of
a good or service.
6. Example….
A semiconductor company rents office space in a
building and produces microchips. The wages paid to
the workers and the material used to produce the
microchips are direct costs.
However, the electricity used to power the entire
building is considered an indirect cost because it
appears on one bill and is difficult to trace back to
the semiconductor company.
7. Type of Cost
3. Fixed Cost
Does not vary with the number of goods or services a
company produces.
4. Variable Cost
This type of cost varies depending on the number of
products a company produces. A variable cost increases
as the production volume increases, and it falls as the
production volume decreases.
12. Simple
Step
List all costs
Classify
Direct Labor
Material
Overhead
Administrative
Analyze the
behavior
Fixed
Variable
Know the number of
production in a given
period. (a month)
13. Why do we need
to measure
costs?
• Knowing cost per unit helps business
owners determine when they'll turn a
profit and helps them price their
products with that in mind.
14. How to
know your
production
costs per
unit…
Cost Amount Total %
Variable Cost
Direct Labor
(Variable)
2,000 40%
Direct Material
(Variable)
1,000 20%
Overhead (Semi
Variable)
500 3,500 10%
Fixed Cost
Depreciation 20 0%
Rent 1,000 20%
Utilities 500 1,520 10%
Total Production Cost 5,020 100%
Divide: Units
Produced
502
Cost per Unit 10
15. Why do we need to measure
costs?
It provides a dynamic
overview of the
relationships among
revenues, costs and profits.
This is why comparison of
break-even points is
generally most meaningful
among companies
18. Example….
Cost Amount Total %
Variable Cost
Direct Labor
(Variable)
2,000 40%
Direct Material
(Variable)
1,000 20%
Overhead (Semi
Variable)
500 3,500 10%
Fixed Cost
Depreciation 20 0%
Rent 1,000 20%
Utilities 500 1,520 10%
Total Production Cost 5,020 100%
Divide: Units Produced 502
Cost per Unit 10
19. Let’s Compute….
Example:
Variable Cost: 3,500 Selling Price:
Units Produced:
20
502
Fixed Cost:
Total
1,520
5,020
=
VCU: (3,500÷502)= 6.7
FCU: (1,520÷502)= 3.0
Break Even Point
BEP Units
BEP Sales (460 X 20 )
1,520_
20-6.7
= 114 Units
= 2,280 Pesos
20. Since you already to know your
breakeven point you can…..
Set a price point at which a business will earn zero
profits on a sale…
Price should be more than that price point.
21.
22. What is PRICING….
Decide the amount required as payment
for (something offered for sale).
Pricing strategy is important for
companies who wish to achieve success
by finding the price point where they can
maximize sales and profits.
23. So what are the strategies
A. Premium Pricing
B. Penetration Pricing
C. Economy Pricing
D. Price Skimming
E. Psychological Pricing
24. Premium Pricing
Premium pricing strategy establishes a price higher
than the competitors.
a strategy that can be effectively used when there is
something unique about the product or when the
product is first to market and the business has a
distinct competitive advantage.
A high price designed to reflect quality, reputation
and status.
25.
26. Penetration Pricing
Penetration pricing strategy is designed to capture
market share by entering the market with a low price
relative to the competition to attract buyers.
The idea is that the business will be able to raise
awareness and get people to try the product.
Even though penetration pricing may initially create a
loss for the company, the hope is that it will help to
generate word-of-mouth and create awareness amid a
crowded market category.
27.
28. Android phones are available at a steep discount, in the
hopes that users will become loyal to the brand.
This approach also opens a wider range of consumers up
to the Android marketplace, while Apple embraces a
skimming strategy, providing high-cost products that skim a
small market share off the top.
29. Price Skimming
Designed to help businesses maximize sales on new
products and services, price skimming involves
setting rates high during the introductory phase.
Not only does price skimming help a small business
recoup its development costs, but it also creates an
illusion of quality and exclusivity when your item is
first introduced to the marketplace.
30.
31.
32.
33. Economy Pricing
With this strategy, businesses minimize the costs
associated with marketing and production in order to
keep product prices down. As a result, customers can
purchase the products they need without frills.
Incredibly effective for large companies, an be
dangerous for small businesses. Because small
businesses lack the sales volume of larger
companies,
34. Psychological Pricing
Psychological pricing strategy is commonly used by
marketers in the prices they establish for their
products.
For instance, 99.99 is psychologically "less" in the
minds of consumers than 100. It's a minor distinction
that can make a big difference.
35.
36. Deciding to raise or lower price
One size does not fit all. You can only go so far
pricing all your products based on a fixed markup
from cost.
Consider the following:
• What the market is willing to pay.
• How your company and product are perceived in
the market.
• What your competitors charge.
37. It is a fact of life in business that you will have to
raise prices from time to time as part of managing
your business prudently.
If you never raise your prices, you won't be in
business for long.
You have to constantly monitor your price and your
cost so that you are both competitive in the market
and you make the kind of money you deserve to
make.
38. How to price your products?
1. Know Your Customer
2. Know Your Costs
3. Have a revenue target
4. Know Your Competition
39. "The best way to determine if the product is being
priced correctly is to watch sales volumes
immediately after making any change,"
Listen to your customers. Try to do this on a regular
basis by getting feedback from customers about your
pricing. Let them know you care about what they
think.
Keep an eye on your competitors. If you don't have
deep pockets and can't afford to hire a market
research team, hire some college students to go out
on a regular basis and monitor what your
competitors are doing.
40. Great pricing is all about figuring out
how much your customers value your
product.
The customer is always right...so include them