Pricing Your Product

Pricing is one of the most important factors you must consider in whatever business you plan to put up. The idea is not to price your product or service too high or too low. If your price is too high, not too many people will be able to afford your product or service. If it’s too low, customers won’t buy it because they’ll think what you’re offering is of inferior quality.

There’s no hard-and-fast rule in determining the right price for your product or service, but there are a few things you’ll want to keep in mind when doing so. One is the cost of your merchandise or service. At the very least, you’ll want to recover the cost of producing your product or service for every sale, and to know your recovery cost you must first determine the cost of producing it.

Your cost has two components: the variable and the fixed. The variable component comprises all direct costs related to producing your product or service, and these are usually your direct 

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