What Price Will Your Customers Pay?
The price you charge for your product or service is one of the most important business decisions you will make. Setting a price that is too high or too low will – at best - limit your business growth. At worst, it could cause serious problems for your sales and cash flow. If you're starting a business, carefully consider your pricing strategy before you start, once established the businesses can improve profitability through regular pricing reviews.
When setting your prices, you must make sure that the price and sales levels you set will allow your business to be profitable. You must also take note of where your product or service stands when compared with your competition.
Below are a few important facts that will help you to understand how your pricing structure should be set.