Once you define your goals and needs, do some research on the market you’re entering. This involves some commercial soul searching - what do you want your business to contribute to the economy and world? This could mean embracing a traditional retail strategy, establishing a service business mindset or emphasizing personal customer relationships in your offering. It should be a calculated, informed choice in which your business identity, brand and financial stability are considered.Īs with any business decision, determining your pricing strategy starts with assessing your own business’s needs and goals. Setting your product or service’s prices shouldn’t be a haphazard decision focused entirely on profit.
What to consider when setting your pricing strategy That’s why it’s important to have a carefully planned pricing strategy.
The way you price your products or services can be a reflection of your business’s identity, how you view and treat your competitors and how you value your customers.
Setting your business’s prices may seem simple: List your product for higher than it costs you to manufacture or acquire it, and you’ll make a profit.īut your prices are more than just numbers. Choosing the right one is essential to your business's success. There are several options when it comes to developing a pricing strategy.
