Tools: Print | Comment | Share

How to price your products and services

In the article "The Secret to Small Business Success," by Fire Wheel Design, the author makes a case for why small business owners must not be afraid to raise their rates. The author Josh, explains how he has successfully used what is known as cost-plus pricing in determining the rates for the products and services offered by his website and says that other small business owners should use this method for determining exactly how much they should charge.

Although not mentioned by the article, the alternative to this form of pricing is what is known as demand-based pricing. This is a form of pricing that uses consumer-based demand in order to determine and set the rates. In my opinion, it would be well worth a small business owner's time to consider both approaches before determining the prices of their products. By neglecting consumer demand, business owners are effectively allowing their competitors to seize the opportunity of appropriately positioning their products in the minds (or the "perceptual maps") of consumers.

Labels: , , ,

Permanent Link  |  View Comments
powered by Disqus
Next article: A new service for print and media professionals »
Next article: A new term is underway »
Next article: E-mail responsiveness affects your professional re... »
Next article: How (and why) you should stand out from the crowd »
Next article: Chevy's write-your-own-ad approach »
Next article: Monday feature from the Globe & Mail »
Next article: Adaptability in a changing environment »
Next article: Did you come here from the Blogger bar? »
Next article: Now reading: 'Blink' by Malcolm Gladwell »
Next article: Another term is finally over »

Browse the archives via the tag cloud found above in the Leader's Toolbox below.

The Leader's Toolbox
books  business  communication  culture  decision making  emotional intelligence  ethics  finance  HR  management  marketing  meetings  motivation  negotiation  organization  performance  presentations  pricing  productivity  resistance to change  strategy  time-management