Pricing - a Cautionary Tale

[Guest guest]

Oooooh! I like this post! One reason is because it's so TRUE! Price

adjusting up is something everyone from producer to consumer hates and the

consumer has been known to abandon the products quickly. It depends on the

price adjustment and the product. There is a rule of thumb out there that

says after taking all variables into account you double your price. A lot of

folk will triple it " just to be on the safe side " .

 

So if your product cost $12.00 to make, you HAVE to charge $24.00. Also,

check round the web, see what other folk are charging, if you're charging

too low you may find that people will think there is something wrong with

your product and if you charge too high, your customer base may never grow

very large, unless of course you manage to become an " elitist " type

supplier. As always, there are exceptions to this, but they tend to be far

and few between.

 

Thanks for this Anya, it's something that we all need to be reminded of from

time to time.

 

K

 

On 12/29/06, Anya <mccoy wrote:

>

> .

>

>

>

 

 

 

--

Cheers!

Kathleen Petrides

The Woobey Queen

Http://www.woobeyworld.com

 

 

 

[Guest guest]

What a shame that this is so public. I have owned my business for over

40 years, the first 2 things one does is to write a business plan and

have a good accountant at your side.

 

As Anya stated, her list is partial. A good accountant will help you

factor into your pricing all the variables. Then each month, quarter,

whatever, adjust your pricing according to any increases passed on to

you. No explanations are needed ~ that's a fact of life. One cannot

see into the future and know in 3 years what anything will cost.

 

While each busines or industry has their own price structure, there are

ways to make things affordable, but again, your accountant is your

right arm in helping you make these decisions.

Hugs,

Buffy

 

, Anya <mccoy wrote:

 

> Pricing your product is a tricky business, and

> you have to take many current and future variables into account: