Frequently Asked Questions

How do I price my product or service?

There are two steps in setting a price. The first is to determine the costs of producing and delivering a product or service. The second is to set a price that is high enough to cover the costs, but is low enough to be competitive.

Through researching your market you will be able to determine if there is an existing market for your product or service, how much your target customers might be prepared to pay, what your competitors are charging, and the potential sales volumes for your product or service.

Having an idea of likely sales volumes is particularly important; otherwise you will not be able to calculate your direct costs. This is less important if you are selling a service where there are very low, if any, direct costs. But it is very important if you are manufacturing, particularly if the costs like raw materials are high.

Prepare an income and expenditure forecast using different prices, so that you can estimate what effect a price increase or decrease would have on your sales.

Price is frequently quoted by customers as their main buying criteria, but often there are many factors involved, such as service offered or convenience. Try clearly to differentiate your product or service in comparison to your competitors and this will help the price to be perceived as less important.

If you need a more detailed response or would like to know more about how we can support your business, please contact us by using our Contact Us form, or alternatively you can email us at info@edeal.org.uk or call us on 0844 2640390

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