Getting your pricing right in business can be tricky, and it’s all too easy to get it wrong. More often than not, business owners underprice and leave money on the table. This is because business owners typically worry more about prices than the customer does. The customer is normally more concerned about other factors like reliability, honesty, getting the job done right first time, punctuality, speed of service or response, and willingness to put things right if they go wrong.
How do you set your prices? Here are a few of the common methods:
So what factors should you take into account when setting your prices?
The best way to price is to use a combination of methods and consider as many factors as possible. Get a good accountant experienced in business to do a costing exercise, but in addition, analyse your competitors and consider all other factors before setting your prices.