Elizabeth Wasserman

How to Price Your Products

 
  • Listen to your customers. Try to do this on a regular basis by getting feedback from customers about your pricing. Let them know you care about what they think.
  • Keep an eye on your competitors. If you don't have deep pockets and can't afford to hire a market research team, hire some college students to go out on a regular basis and monitor what your competitors are doing.
  • Have a budget action plan in place. Try to have a plan for your pricing that extends out three to six months in the future.

You owe it to yourself and to your business to be relentless in managing your product pricing. Remember, how you set the price of the products could be the difference between the success -- or failure -- of your business.

Dig Deeper: Making the Case for Higher Prices

Related Links:
Case Study: Finding the Right Price for a Hot Product
Luke Skurman's quirky college guides were a big hit. The problem was getting readers to pay. What if he gave the content away?

Recession Pricing Strategies: How Low Can You Really Go?
Tempted to cut prices? You're not alone.

The Price Is Right
Setting prices has always been more art than science. New software aims to change that.

The Right Price
Too many new entrepreneurs harm their own prospects by under pricing their goods and services. But if those company owners just take the time to think, they can set their prices closer to fair market value.

Is It Time to Raise Prices?
Boost your bottom line by taking the guesswork out of pricing.

Flexing Your Pricing Muscles
Despite years of almost no inflation, you may have more pricing power than you think. Here's how to exercise it without bruising yourself in the process.

Recommended Resources:
The Art of Pricing: How to Find Hidden Profits to Grow Your Business
By Rafi Mohammed
www.rafimo.com
The author has a very interesting point about how to get out of the pricing “Catch 22” by adopting a multi-price mindset.

How to Sell at Margins Higher than Your Competitors: Winning Every Sale at Full Price
by Lawrence L. Steinmetz, and William T. Brooks
National Federation of Independent Business
This trade association for small and mid-sized businesses maintains a section on how to set prices, when to give discounts, and when to raise your rates, among other topics.

U.S. Small Business Administration
Government agency for small business matters operates a website devoted to market and price decisions that businesses must make.

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Elizabeth Wasserman is editor of Inc.'s technology website, IncTechnology.com. Based in the Washington, D.C. area, she has more than 15 years experience writing about business, technology, and politics for newspapers, magazines and websites. Her work has appeared in such publications as Congressional Quarterly, Business Week, Portfolio and Slate.