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The Price of Bad Pricing

Pt 101243

The Price of Bad Pricing @ NYTimes.com

If there is an aspect of running a small business that doesn’t get enough attention, I think it’s pricing. Unfortunately, there’s a good reason for that: pricing is hard to do and easy to ignore. But that’s especially dangerous right now when there’s a good chance your own expenses are changing.

With most management decisions, your goals are pretty straight forward. Most of the time, you simply want to be the best at whatever you do. You want to have the best staff, the best service, the best marketing. But pricing is more complicated. You may say you want to offer the best price. But what does that mean? The lowest price for the customer? The price that will provide the best value for the customer? The price that will result in the highest profit for your company? The price that will result in the most sales for your company?

READ MORE.

This is an excellent article, a lot of kit makers do not price their kits so they can have enough margin to not only sell to customers but to resellers, this really limits where and how their products can be sold.


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