How To Fix A Price For Your Product

A lot of people think of selling the products which they make. Starting a small scale business will give you profit also. So, how will you give a price to your products? Will that be on the effort you have put into making the product? A common mistake that people make is giving a price which is much below the price of a competitor. When you do so, you are doing wrong to yourself. Will you buy a product which is so less in price, leaving the usual product you use? The answer is NO. No one will buy a product which is in the beginning stage and also has a very less price thinking that it is a low quality product. You need to give a reasonable price to the product so that the expense you have paid gets reimburse in the form of profit.

Do not see yourself as a target customer. If you price a product according to the price you can afford, you are indirectly de-promoting the product. The major things you need to keep in mind is the labor and the materials. If your material and labor cost comes to $10, you will have to price your product $12 so that the excess amount can be your profit. If you have any doubt, get the help of a professional so that you can make a good profit.

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