Product Pricing: Price your product or service

Introduction to Product Pricing

The price you charge for your product or service is one of the most important business decisions you make. Setting a price that is too high or too low will - at best - limit your business' growth. At worst, it could cause serious problems for your sales and cashflow.

If you're starting a business, carefully consider your pricing strategy before you start. Established businesses can improve their profitability through regular pricing reviews.

There are two crucial points to consider when setting your prices:

1. The price and sales levels you need to set to make sure your business is profitable.
2. Where your product or service stands compared with your competition.