Wednesday, March 4, 2015

Have a pricing strategy

Don't just set a price based on production costs plus a margin. Pricing is a powerful tool to achieve your goals - decide what you are trying to achieve and what message you're giving out by setting your price at a certain level. High prices mean you're likely to sell less, but can give the impression of a premium product. Low prices can allow you to break into or dominate a particular market, although this may mean low profitability in the short term. Ensure pricing is part of a greater strategy, and include this in your marketing plan.

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