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So, You Want to Start a Business?: 8 Steps to Take Before Making the Leap by Charles F. Goetz, Edward D. Hess

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Chapter Six. What Is the Right Price for Your Product or Service?

<feature><title>Chapter Topics</title> <objective>

Why is price important?

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<objective>

Profit = Sales Price – Costs

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<objective>

Variable costs and fixed costs

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Cost plus pricing or competitive pricing

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Break-even: How do you cover your costs?

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The use of payment terms, discounts, guarantees, and sales

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The price you pick for your product and/or service is one of the most important factors in building a successful business. The price you pick impacts

  • Whether customers will buy your product

  • The positioning of your product against your competition

  • Your business’s profitability

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