Setting the right price for a new product or service can be one of the biggest problems faced by small business owners. Costing your product or service can be relatively straightforward, but pricing must take account of what competitors are charging and what customers will be prepared to pay, but clearly the price needs to cover all the costs and allow for a profit.
Knowing how to determine the right price for your product or service is critical. There are many factors to consider such as direct costs, indirect costs, your customers and your competitors. The workshop will consider practical strategies to balance the right price for your product or service and sales volumes – so that you are working towards achieving your business objectives.
We will cover:
- Direct & Indirect costs and their calculation
- Consider costs for service based business
- Consider costs for a production based business
- How much to charge?
- How do price and sales volumes interact?
- Different pricing strategies