Being profitable and able to match all direct competitors are critical objectives for any business organization. Often times, these objectives are primarily accomplished through an effective pricing strategy. A well-thought-out pricing strategy from the get-go cannot only optimize both the sales volume and profit of your business but also positions your business at the forefront of the market.
Otherwise, a pricing strategy marred by faults and inaccuracies will only cause financial losses and hinder your business’ success. Price your product too high, and you most likely would not land enough customers to break even, pay the salaries of your employees, and support your operations. Likewise, price your product too low, and you would not earn a profit, and the value of your product will be put into questions.
There are different factors you need to consider first in order to come up with an optimized pricing strategy. This includes the Unique Selling Proposition (UPS) of your business, the current market situation, and the costs you incurred in delivering your product and services to the market.
To learn more about these factors and the different methods of setting the right price for your products and services, check this infographic from Business Coaches Sydney.