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What is pricing?
Pricing your products or services is one of the most important things you can do. Remember that your pricing strategy is the key to profits!
Pricing your product or service must serve two purposes:
Insure profitability for your business. Be attractive to your customer base.
You will need to know the answers to the following questions before developing your pricing strategy:
- Do you know how much it costs to produce your product or service (including your labor)?
- Do you know the break-even point of your business?
- Do you know how many units (product or service) you must sell to break-even?
- Do you know what your competitors charge?
- Do you know what customers are willing to pay for your product or service?
If you cannot answer these questions you will need to conduct market research prior to developing your pricing strategy.
Next Steps:
1. If you are having difficulty pricing your product or service, we encourage you to take the Market Research and Financial Analysis I and II workshops in the JumpStart series.
2. To discuss and refine your pricing strategy set up an appointment with a WBDC business counselor, by calling 312-853-3477, x0.
3. For more in-depth information about developing your product strategy visit the Online Women’s Business Center Marketing Mall.
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