Manager's Notebook
According to pricing expert Tim Baye, an associate professor at the University of Wisconsin-Extension in Lancaster, small-company executives are getting more sophisticated at pricing their products and services. One factor: souped-up computerized accounting systems. Still, small-company executives report that they use a wide range of methods to set prices.
| Which approach did you use to price your most recent new product or service? | |
| Cover cost and make a fair profit | 41% |
| Charge what the market will bear | 30% |
| Price relative to related products/match what competitors charge | 21% |
| Use best guesstimate | 5% |