You have decided you are going to start your own business. You have a product or service in mind and now struggle with the question with high/ low should you set your prices. There are a couple of methods most business people use to set prices namely:
- Market pricing: look at the market to see how much similar products are being sold and price your product accordingly.
- Cost plus pricing: compute your total cost of acquiring the product and do a markup of total cost
- Bait pricing: price your product so low or freely give it a way to create a market
The blogs to follow will discuss the plus and minuses of using each of these pricing models.