Pricing For Profit from Beth Andrus on Vimeo.
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Tags: homebased business, pricing, profit, small business
July 22nd, 2010
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It's so tricky pricing, ain't it? Experimentation is so important, yet once a price is set, it's kind of hard to change until you offer a better offering.
Tough one!
I think it is tricky! In my instance, if I print more products then the price is cheaper. Although, when you begin its difficult to take that risk so you print less which creates less of a profit. How do you figure the price based on this?
Pricing is so much more involved than most people realize, for a million reasons. When I had my tshirt business I had the same problem as @drheather. It was cheaper to order more shirts, but it only "paid off" if I sold X amount. I set up an excel spreadsheet to determine the best order quantity, and I would use this cost to figure my price. It worked out in my favor 80% of the time. An additional problem is, if you're price is too low, raising it, stricly because you miscalcualted your costs, will certainly upset your current customers. If possible, you can set your higher price, and offer a "preferred customer" price, until you get a bit of data to work with. Pricing is math, with a heavy dose of finesse. Thanks, all, for taking the time to comment.