Pricing Your Product or Service

3. Checking the Competition

It is certain that you will face competition in some form. This gives you an opportunity to benchmark your potential pricing.

3.1 Phone your rivals and ask for a price quote.

• If your competitors know you, get someone else to call.

3.2 Use this information as a framework. It is probably unwise to set your prices too much lower or higher without good reason.

• Too low and you will throw away profit.
• Too high and you will lose customers, unless you can offer them something not available elsewhere.