OnDemand WTP Pricing Research

Pricing Policy Explained | The Real Entrepreneur

If you’re thinking of starting a business, you first need to come up with a realistic idea you can turn into a successful product or service. Whether you’re deciding to sell a product you’ve manufactured/purchased or providing a service, a policy on pricing is essential.

Pricing must always be transparent, showing the make up in detail. Generally buyers from large companies will expect that clarity and declaration. However, certain forces dictate the price you set. They are;

Market rate

The competition will always, by default, advise you what you can charge. They have set the price within the market and while there may be small differentials by geographical area, or with product enhancements, generally services and products have a worth and a price can be set.

Bucking the trend and setting different prices will make you very competitive or the reverse uncompetitive. Both can have detrimental effect on your bottom line. Piling it high and selling it cheap can give as poor a return as selling it expensively but to less customers. Consider the consequence of your actions.

Read complete article here:

Pricing Policy Explained – The Real Entrepreneur.

Post a Comment

WP-SpamFree by Pole Position Marketing