News

Pricing Your Product (or Service)

April Post2Chart the right course.

As a small business owner, you know that pricing your products correctly is crucial to sustaining and growing your business. But the price you’ve pinpointed for your product or service is just the tip of the iceberg.

 

Underneath the dollar sign lies the real substance…the work of determining:

 

True costs associated with selling your products considering:

  1. basic product costs
  2. general overhead costs
    -labor, general overhead, general professional marketing and advertising costs
    ** will show where the breakeven point is on a product and/or your full product mix

 

The profit margin considering:

    1. competitor pricing
    2. product-related advertising

And, when applicable,

    1. returns cost
    2. free or at a loss shipping

 

Of course, many other factors go into pricing strategies such as:

      • competitive advantages
      • the perceived value of your product/service
      • the market demand
      • customer demographics

It’s time to really understand your true costs and your profit margin. This understanding will lead to insights about pricing and will benefit your business.

 

Need help? Northern Initiatives’ customers have access to a team of business services experts who will set you on the right course and keep your ship afloat.

More News Stories

This article in MIBiz is a good explanation of Michigan's new CDFI Coalition. Here's a snippet: Elissa Sangalli, president of Marquette-based Northern Initiatives, said she…
Read More
GT Regional Community Foundation and Northern Initiatives A story about year-end giving in Northern Express mentions the Grand Traverse Regional Community Foundation and its recent…
Read More
The Grand Traverse Regional Community Foundation is the fifth community foundation to invest in its community through Northern Initiatives. “Impact investing, also known as Program…
Read More