Determining Selling Prices in Business – When starting a business, determining the price to be determined since the beginning essentials as selling a product that we offer. Many ways to determine the actual price of the products you are selling. Here I will share three approaches are often used to determine the selling price of an item.
Selling price based on cost
Setting the selling price based on cost is the most widely used. How simple, how much the total cost is added to the desired profit margin, then that’s the price of the product.
Selling price based competition
Commonly used by newcomers. Because he’s “player” just to sell a similar product that first there, then he will check what price competitors before deciding to set the selling price for its product.
Selling price is usually cheaper than existing products first. Although less expensive, usually remains little benefit. The difference, perhaps a benefit margin less than competitors.
In some cases, there is also a bold statement when implementing a strategy based on the selling price of the competition. Usually, it is done by large investors. In principle, it does not matter loss in the early days, the next important continue to profit. Another consideration using a strategy based on the selling price of this competition in order to accelerate market penetration and increase market share of consumers.
Selling price based special purpose
The third strategy for the sale price of the product using a special-purpose approach. What goals you want to achieve from the selling price. The goal, to be able to increase the number of sales, boosting the image of the product, or other special purposes. For example, because it will come a new product, then to spend digelarlah old stock clearance.