to sell presentations 40 hours a week.
The same thing apply to e.g. accountants, lawyers, psychologists and
others.
Pricing
Eventually, an independent business owner must price his/her
product/service. To many this is unexplored territory. However, it does not
have to cause too much trouble. You just need to be aware of relatively few
conditions.
• Market mechanisms allow you to fix a high price on your
product/service if there is a great demand and a poor supply.
• Oppositely, if there is a poor demand and a surplus of similar
products/services in the market you may be forced to fix a low price.
Expenses
Before your product/service reaches the customer, a number of cost
accumulating activities have taken place – activities such as:
• Purchase, cost of sales and maybe also raw material processing
• Wages
• Freight, import duty
• Administration, etc.
Once you have determined your expenses you can easily fix a 'break even
price' on your product/service. Add your required profit and you have a
sales price. Do not forget to add VAT or other expenses demanded by the
state if it is obligatory in your country.
The calculation could look like this:
Cost price /raw material
+ Cost of production
+ Profit
= Sales price
Price is only one of many competitive parameters. You should also pay
attention to a number of other conditions: service, quality, close to market,
prestige, ‘the good story’ etc.
Target Group Demand
Your target group conditions also influence the pricing:
• What are the customer’s requirements, buying motive, expendable
capital?
• Season, trend, fashion
• The customer’s price expectations – psychological price, corporate
image, price and quality, etc.
15
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51