I was watching a local program last night about when the show discussed a letter sent to them by an avid viewer who wants to start her own business. The viewer inquire about how to price the products you are about to sell. The who gave 3 pointers to stand as guide when it comes to pricing your product. I'll be writing here here the 3 pointers they gave, but of course, a bit different and I applied my personal views about it, according to my own experience.
For this matter, the pricing we are talking about is a tangible product, something you and other people can use, eat, drink, touch or play with. This does not include intangible services.
- Basic Pricing
Basic pricing is the first point you have to know when you are to price the product you've just made. Basic pricing includes all of the expenses that revolves around the product. From the main ingredient, to the additives, up to the wrapper of your product. Of course if your product concerns food, you have to invest in a packaging material that will keep the food fresh and clean. Augmented Price
Augmented price is the price that we need to spend to promote od advertise our product. This includes hiring people for promotion, making banner materials, leaflets and promotion posters. This also includes the transportation needed to ship your product from one place to another. - Situation/Location
We must also keep in mind that our pricing also depends on the location where we are selling our products and the situation in the given place. For example, if you are selling an ice cream in a district during summer season and you are the only one who is selling it, you can at least put the pricing over the usual because the demand is high. But when someone opens another ice cream store, you can now lower back your price to what is normal to have a fair competition with the other. Outside school is also an appropriate location for selling kids stuff therefore the demand there is pretty much higher than in other place, so consider lowering your price that children can afford.
Putting all these three pointers, I'm sure you can come up with a good pricing for the product you are selling. Just don't be greedy, you can never have so much of some things. Be fair to everyone.
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