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Pricing can be a challenge to entrepreneurs at any stage of the business cycle -- whether you're setting prices for the first time, raising or lowering existing prices, or determining how to react to the unsteady economic climate. Overprice, and you risk losing business to competitors. Underprice, and you may inadvertently devalue your offerings.

Inc.com will help you tackle the pricing issue -- we've compiled strategies, advice, and techniques that have served other entrepreneurs well.

Pricing Strategies

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.
Competing on Price Alone
Pricing shouldn't be the cornerstone of your competitive strategy, but it can't be ignored. Learn ways small businesses can set and maintain competitive pricing.
The Hidden Dangers -- and Payoffs -- of "Targeted Pricing"
Should your firm target your competitors' customers with lower prices than the competition charges them? When might it make sense, instead, to offer discounts to your own customers?

Setting the Price

How should pricing to retailers, who buy in quantity, differ from pricing to individuals?
Learn how to factor in your relationship with your retailers and the importance of individual sales when setting your prices.
Pricing and Fairness: Do Your Customers Assume You Are Gouging Them?
Do shoppers feel they get a fair shake from the businesses they regularly patronize? According to researchers, findings suggest that shoppers tend to think prices are unfair.

Price Increases

Dealing With Cost Hikes
Lots of people will tell you now is the best time to raise prices. Don't follow them!
Is It Time to Raise Prices?
Boost your bottom line by taking the guesswork out of pricing.
The Case for Higher Prices
Entrepreneur Norm Brodsky believes that as a matter of sound business practice, it's important to raise prices regularly.
Case Study: Taking the Bite Out of a Price Increase
Here's how CQC Dental Laboratory raised prices without losing customers.
Charge Your Clients More
Solosits: If you plan and execute your rate hike carefully, your clients will pay those higher rates you deserve.

Under Pricing

The Right Price
Uncertainty of what to charge, and the fear of losing business, cause many new entrepreneurs to undercharge for their services. Take a little time to think, and you'll come up with a fair price.
CEO's Regret #7: Charging Too Little for Too Long
When Inc. 500 CEO Daniel Gould first went into business, he offered his customers "the Wal-Mart attitude: rock-bottom prices all the time." But at the end of the day, he didn't have much to show for it.
My Biggest Mistake
The Restoration Hardware furniture promotion seemed like a good idea at the time. But selling a disproportionate amount of goods at discount prices was a costly mistake.

Inc. Classics: Timeless Advice from Entrepreneurs

Avoid the Price-Cut Trap
Instead of cutting prices, bundle products to increase sales.
More Nights at the Opera
An opera company maximizes revenue by pricing tickets according to the demand for each seat at each show time.
Holding Back on Price Hikes
Consider asking customers to absorb charges for ancillary services associated with your product or service.
Value vs. Vision
For consultants, pricing is a marketing issue that determines how you position yourself and how the market perceives you.
Last updated: Jan 26, 2006




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