Tips for setting the right price

When you have a company you need to analyze and fix the price of your products or services correctly. Prices too high and scare customers could go with competition, lowest prices can make you lose money and also give a bad image of your company.

setting right price

That is why we will give you some tips to help you set the right price for your products or services and you get good results.

Investigates how much costs your product or service
When you open a small business either for accountants, architects, lawyers and other professionals it is possible that do not calculate correctly the cost of your time to establish the value of their work. If you save time, earn more. For example, a counter charge fixed prices for their jobs because they do not spend too much time in them; they usually have an assistant who helps with tedious tasks while they only review important documents.

Think of the money you get for your sales
You have to see the raw money you get, or the difference between total revenue and the cost of production. This way, you can measure the effectiveness of a company to convert materials, hours and services revenue. You should calculate if everything that you need to pay, such as salaries to your employees, purchase of materials and costs for services gives you benefits at the time of establishing your winnings.

Should you pay commissions?
If your company works with other people who have to pay fees, then when setting prices for your products or services must include a percentage to pay these your partners. For example, if you own a wine cellar then you do not pay commission and your products sell themselves, but if you work with sales through other channels and you need help from people offering your services, then you must be aware that all earnings will not be just for you.

Think well before you set your prices and services that once set, can not make change for a while. No customer will like the idea that your products or services rose in price for no apparent reason.