One of the most difficult decisions is to determine what is the right price for the products or services you sell. If you sell at too high a rate you’ll never have a buyer but if you sell too cheap then that is what your customer assumes they will get. It’s a balancing act that continues to change. Imagine a seesaw when more competition goes on board your prices must lower but if you can differentiate your service or product from the rest well then it’s a whole new game. Here are a few factors you must consider when deciding the right price.
(1) Are you looking to have many customers or do you want to pay special attention to each individual customer?
(2) Is this a business where you need monies coming in on a constant basis because expenses continue to rise or can you keep your costs fixed?
(3) Does this business/job produce most of your income or do you have other sources to offset slower periods?
(4) Will marketing and advertising enable you to charge a higher price or will it just be a drain on your profits?
(5) Are you looking to create a brand or identity that has a certain social status?