Price determination of customer capital

Questions to ask when pricing your product  August 29, 2010 – 12:28 pm

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It is important to understand what effect the price that you choose for your product will have on your business finances. The impact of the price that you set will determine whether or not your business operates financially strong or suffers from a low cash flow. It is important to understand that setting the right price the first time a product is launched is crucial. If you have to reset the price on your product you will most likely lose sales because of it. In addition, it is important to understand that pricing to low can be a serious problem as well. While you don’t want a high price to drive your customers to your competition you also want your customers to perceive your product as having value which can be deflated by a low price. Because of the huge impact of pricing there are many different questions you should ask before settling on a final price. Here are some questions to ask when pricing your product-

Source: Finance Info

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