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How do I price my products and services?

As a mentor this is a question that I receive a lot! I have created a video so that the information can be made available to all that have the question and need a clearly defined and thoughtful answer. To view the video:https://youtu.be/5bM5C_Bl33E.

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7 answers

Depending on your market research

Report Ahmed's answer

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I recommend your pricing strategy build in 30% margin. so if it costs you a $1 to make the product, then sell it for $1.30 to make 30 cents profit on each sale

Report Sumona's answer

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First you research your competition. If your competition doesn't freely list their pricing, then you pretend you're interested in buying with them and you give them enough information to contact you but that's all. Once you gather some of their pricing you use it as a template to create yours. You must include Margin as reference above by Sumona. But the amount of margin you add has got to based on what your expenses are and on what your sales revenue needs to be depending on what your business plan says. Margin is important to keep you competitive in the industry, but you do not need to be the least costly product. Remember that product value outweighs product cost. If your competition doesn't exist and you've created a new niche, then look at the pricing of products in niches that near to yours and then follow your business plan. If you don't have a business plan, I can help you create one. Hope that helps.

Report Adam's answer

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Report Daniel's answer

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It starts with researching the market, know your competitors, demand and supply. 1) How much time, materials and expenses does it cost you to make and sell 1 unit? What is your break even point? What are your desired profits? What is the current cost of a similar product/service?

Do the math early and financial calculations in your business plan: The formula for calculating net income is: Revenue – Cost of Goods Sold – Expenses = Net Income. Gross income – Expenses = Net Income. Total Revenues – Total Expenses = Net Income. Net Income + Interest Expense + Taxes = Operating Net Income. Gross Profit – Operating Expenses – Depreciation – Amortization = Operating Income.

Report E-le-tha's answer

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Be consistent with your booking keepings and then use that to price your services and product Your cash flow and cash out is very important that will help a lot

Report MEGA CULINARY AND DECOR's answer

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Your marketing research, after knowing what your competitor fixed their price you might reduced it little bit.

Report Goodluck's answer

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