SBA on How to Price Your Products and Services

This article gives very good advice on how to set the original price for your products as well as how to adjust your prices depending on what your customers are doing. Most importantly, according to this article, pricing is the most critical element to achieving a profit. The first step to pricing is to understand service costs, such as material, labor, and overhead costs, and then to worry about other aspects such as competitor prices.


Applicability to Business

  • Pricing is the key element to achieving a profit
  • A business cannot sell a good or service without an effective pricing strategy


Learning Outcomes

  • Identify your business’s service costs (materials, labor, and overhead)
  • Apply those service costs to determine a potential price for a good or service