Setting the right price for your products or services helps you maximise profits while maintaining a good relationship with your customers. Effective pricing can help you avoid the serious financial problems that may occur if your prices are too high or low – if you charge too much you may price yourself out of the market, but if you charge too little you may be underpaid for your work.
Pricing your products or services does not have to be a stressful process. Remember:
- you are in business to make a profit
- it is much easier to lower your prices than to raise them
- thorough research will help you to establish the right price.
The right price is fair to your customers (i.e. they are willing to pay it) and your business (i.e. you cover costs and make a profit).
This guide will help you set a fair price for your products and services.