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Setting Prices

  • Jul 25
  • 1 min read

How do you set prices for your products and services?

Cost-plus? Market value? Are you a price-taker? Vibes??

If it's cost-plus, have you captured all the relevant costs? Are you setting the markup high enough to cover fixed costs, interest on debt, dividends, and profit?

If it's market value, how do you determine that price? How do you decide if your offering should be on the low-end, high-end, or somewhere in between in the value range?

If it's set by a commodity market, or by regulation, clearly there's not much to be done here because you are a price-taker. Your only recourse is cost control.

Whatever you choose, it's important to be intentional and strategic about pricing your offering so that you can avoid leaving money on the table.

 
 
 

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