Pricing Your Product

Q: How do I figure out what to charge for my products?

A: Pricing products is something every businessperson thinks about. You don't want to price yourself out of the market, but at the same time you want to provide sufficient margin to cover overhead and generate a profit. Therefore, in pricing your products you must consider these two factors: what the market will bear and your profit margins. These factors apply to pricing both products and services.

To find out what the market will bear, ask yourself this question: Is my product or service unique? If it is--meaning there's little in the way of direct and indirect competition--then you're a market leader and you have more leeway in setting the prices.