Understanding your market and demand is one thing – but developing a sustainable price point can be tricky. You need to recognise the value that your product and service holds, without being too unrealistic.Use factors such as Uniqueness – do you have a product or service that nobody else is offering? How much it costs you for rent, wages and any other fixed costs, you can also include your marketing in this too. Payment methods are another element that many people forget about when they are thinking about their pricing strategy. You must be as flexible as you can with payment options, make it easy for your customers to pay you!
You must review your pricing and business expenses regularly to ensure your current pricing strategy is relevant and is not leaving you out of pocket. Take a look at the products that have sold really well – why do you think that it? Do the same with the products that didn’t sell so well. How can you improve and expand to cater for different budgets?