Useful tips to price a product

sheryl · #1 01-09-2010, 01:29 PM

1. Always mark up the price at least 100% more than what you paid for it. Your company needs to make a profit so always make sure mark up the price at a minimum of 100% more than what you paid for it. You can even mark up the price to 300% more than what you paid for it
sometimes.

2. See what your other competitors prices are for each product or service that is similar to your company. You can see how much they charge to get a general idea of what price customers are usually paying for each product. You want to have your price range for each product or service somewhere in between the price range of other competitors unless your product or service is much better than others.

3. Is your company product or service better than the other competitors? If the products are better than the others then make sure to mark up the price. You need to be able to back up your prices with reasons as to why your products are better. You need to give them reasons how your products or service will benefit them more than the competitor.

4. Is there any additional products or services that your company can offer ? You have an advantage over other competitors if they don't currently offer an additional product or service. There is another way that you can make more profit for your company by having even more products or service.

5. Make sure to check out which weekends that your competitor has sales or special deals. You need to make sure that your company offers the same type of sales or special deals in regards to products and services that are similar. You want the customers to buy a service or product from your company instead of your competitor.

6. You want to become better than your competitor in regards to being able to provide excellent customer service along with services and products offered. It will help you get more profits if you become the best company in the local area no matter what the product or service may be.

david.adodis · #2 01-13-2010, 05:18 PM

Thanks for sharing useful tips, I am starter for my business, it may helps me to improve my business.

carl12 · #3 01-14-2010, 04:50 AM

Hello Friends......

Actually I was looking for this.Thanks for sharing.

Keep sharing more useful tips in the future.

Have a nice time ahead.

Thanks

stepheny · #4 01-25-2010, 02:11 PM

That's are Great Tips Which You have shared here With us
For Pricing a Product,Keep Sharing such Useful Information With us...

Thanks & Regards,
stepheny

AirForce1 · #5 01-25-2010, 04:03 PM

Thanks for nice sharing and I always price my products according to my competitors prices, sometimes lower but sometimes higher.

Have a nice day,

alanwalters · #6 01-28-2010, 02:56 PM

Nice tips thanks for sharing .

james34 · #7 02-01-2010, 10:32 AM

Hi

Hi,

Excellent tips about Product Pricing, thanks for sharing here.

See product pricing is varies from time to time. If you are entering in to new product segment where there are no competitors, you can go for one price which you like. But once competitors enters you need to consider other thing that is quality of product or service you offer, so now you can fix some other price (less or more than competitor price).

Regards,

alkalinewater · #8 02-09-2010, 11:51 AM

After the product is received by the customer and depending on the payment terms it may be another 30 days or more before payment. And the payment check may be cut on the 30th day and mailed which adds another 5-9 days to the delivery time. Then when the check is cashed the bank might add another 5 days to clear the check and post the payment to the account.The lag between when the inventory expense is occurred and revenue is received from that inventory can prevent the ordering of more inventory. What usually happens is that sales take off but the inventor or entrepreneur cannot purchase more inventories to fuel the growth. Since the orders are not filled in a timely manner, customers cancel their orders and sales dry up. There are ways to finance inventory such as early payment discounts, factoring, and purchase order financing but each has risks and draw backs. These methods will not be covered here.Another way the business can sink is related to manufacturing issues. One may be that the manufacturer is not set up to handle large orders. As with the inventory financing above the orders cannot be filled in a timely manner and are eventually canceled. Another problem may be quality. For a new product there will be a learning curve and if the product involves new processes and machines this learning curve can take some time. New manufacturing equipment and processes can take some time to debug. What usually happens is that a large volume of bad product is made because of quality issues have not been discovered and resolved before it is too late. In this case sales dry up because many customers receive low quality products.