Settling on a price for your goods, time and services can be tricky. You have to factor in everything from your own costs to your demographics’ budget. This is a delicate process that can be made easier by following suggestions from Open Small Business Forum. Some of the ideas include:
•Knowing your customer. Do surveys or hire a market specialist, but you must know what gets included in your potential customers’ budgets, as well as their likes and dislikes.
•Carefully considering before you cut your prices to stay competitive (and beware of “slashing” versus “cutting”). Consider keeping your price the same and adding – or pointing out the – extra value of your services.
•Reviewing your pricing often and make changes accordingly. This includes what you’re charging customers and what you’re paying out as a business owner to your suppliers. Many salons have either begun charging or done away with some of the “little things” they used to provide free for customers.
Source:
Open Small Business Forum: The Keys to Pricing Your Product Right
