Avoid underpricing products by analyzing costs, competition and customer need

Filed under Marketing

By adding value to their products and services, small businesses can boost prices without losing sales, the New York Times reported. Small business owners who underestimate their costs often underprice their goods and services. To determine how much to charge, consider competitors’ prices and whether your products offer more value, suggested pricing consulting Rafi Mohammed, who was quoted in the article. Consider offering tiered pricing or off-peak pricing, and ask customers whether they would pay more for extra services or buy more with a volume discount, Mohammed told the New York Times.

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