As for successful business pricing
There are several methods to fix prices, despite this the percentage of employers who fail to apply it is quite high, perhaps because many are still using the method of copying competitors price without even making a more thorough analysis.
Unfortunately, this simple but important factor is gradually eroding the profitability of a business, may even lead to bankruptcy for many entrepreneurs who in their eagerness to sell more, lose control of their prices, causing serious consequences to your company.
It is true that the price competition in the market is very fierce, and that is why the importance of providing appropriate prices, a high price could be pasted directly into sales, as this would put us out of the market, or a very low price could result in losses for not having proper control of the profit margin of a product or service.
By way of comparison I say that pricing is more or less important than the product itself, and I say to somehow aware from the smallest to the largest employers send the message to set a price that can not be laziness or the conformity, as it can be in the game business itself.
Then I bring you three secrets that I particularly have applied with very satisfactory results, are issues that may seem simple, but must be applied diligently to take care of every detail of pricing as it does a good businessman.
1. Reckoning
Is usually so obvious the fact of making calculations to get the net cost of a product or service, that many employers are forgotten.
Costea the product or service you offer, add up all costs and expenses that have to do to give your product in the hands of the Customer
For a product will have to add all the raw materials you use, the manpower to do it, wraps, water, electricity, delivery costs or delivery, in short, a full description of all costs incurred until its sale.
For a service you’ll need to add the cost of labor whether employees who have, or even the cost of your time if you give a professional, tool costs, machine costs, and all other expenses have to do to give the customer service, do it thoroughly as there are always hidden costs that do not take into account.
2. Perform a market analysis
Usually we learn competitive prices and have the facility to explore and investigate further into the details of the prices in the market for a product or service.
An analysis of market prices will provide the basis to establish a price range-correct, even in the process you can learn the shortcomings of your competitors prices, so you can take advantages of knowing.
3. Determine the profit margin
Of course, this is the most important determining factor, not that we have to allocate the price in our opinion and we agree, determine a profit margin for a product or service can become an art form when it is perfected the method.
Once we know how much it costs to give the customer your product or service and that we have analyzed the market to determine prices that manages the competition, we must determine a percentage of profit, which shall be consistent with these two factors;
A price below the cost would be disastrous missed opportunities, though it seems absurd today, there are entrepreneurs who sell below cost, created it or not!
A price above the market competition would take us unless we offer a high quality gourmet product, unique in the market.
This factor is very important because that even a penny, either good or bad determined, multiplied by the number of products you sell or go to sell, could cause large amounts of profit or loss, as the case
I hope that even if you do not apply these rules of thumb to set prices that start doing immediately, through knowledge may better understand your business and competition, that you will undoubtedly be a better businessman.