One for a nickel, two for a dime, five for twenty-five cents!

quarter, dime , nickel, pennyPricing: something many business owners fret over. They worry about local competitors, big box stores, Amazon, and other online sellers. They sometimes set prices based on what others are selling for and don’t consider customer value. If you set your prices arbitrarily, it might be the same as letting the customer make you an offer. Unless you have calculated your price based on your costs and expected profit, your profit may not be what you anticipate. Setting the right price for your products or services can often make the difference between business success and failure, or profit and loss. There are many paradigms that can be used to set prices, choosing the right one for your business can be critical.

Proper pricing is critical to a healthy and competitive business environment, and remains one of the most important issues for businesses both large and small. How you price your products and services should communicate both values that you have to offer your clientele and the vision that you have set for your company. If you offer installation, training, off-season storage, free maintenance, or a myriad of other services that are valued by customers, they will be willing to pay a higher price for the convenience. Small businesses should identify what is of value to customers and build these services into their business model because they will never have the buying power of large companies.  Continue reading here.

Speaking of Business Blog by Dr. Philip R. Geist, Area Director, Florida SBDC at UNF

 

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