- First, decide whether you are marketing your business on quality or price. If your strategy is price-led, then you will need to create volume, and must be clearly cheaper than the equivalent level of competition. If you are quality-led, then low prices may send out the wrong impression.
- If you are a new business and do not know your correct price level, it is easier to start high and then lower your prices than to start too low and then discover that you need to raise them.
- If you believe that your goods or services are of a high quality, do not be afraid of pricing them accordingly. (Goods and services of high quality or value; or which are tailored to the specific needs of the customer or client, may be subject to different legislation.
Off to see my lawyer can help you draft your Terms (of sale or provision of services) accordingly.)
- Make sure you have fully costed all your product or service inputs before finalising your price.
- Do you have any goods or services that you can advertise as ‘loss-leaders’ to attract customers to your business?
Checklist Source: Start Up & Run Your Own Business: The Essential Guide to Planning, Funding & Growing your New Enterprise by Jonathan Reuvid (Kogan Page; 8th edition 2011)