We ran across a great article from Inc.com that provides a very comprehensive overview of pricing. The article starts by describing just how difficult it is and also how essential it is to do pricing correctly for any business. After some general discussion on some pitfalls with regard to pricing, the article provides the following five factors to consider when setting up pricing.
- Know Your Customer
- Know Your Costs
- Know Your Revenue Target
- Know your Competition
- Know Where the Market Is Headed
The article gives a lot of good material to consider when thinking about the above points. The final points the article covers is When and How to raise or lower prices and the importance of monitoring the pricing you eventually set up. After all, the price of products can either make or break your business.
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