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Make More Money - Pricing

Pricing is a tricky thing. Most businesses add a 10% to 40% markup.  We add the markup to the cost and put the item on the shelf.  Markups are easy but do they make us as much money as they could? Is cost the only thing to think about in setting price?

A business should think about other things. Limited supply for a product that lots of customers want means we can sell the product for more money. What is the competition doing? In a competitive environment a little change in price might mean we can sell a lot more. How do customers see our product? One way to convince customers of quality is to have a high price.

Careful testing and watching customers' responses to new prices will show if it is working. Cost is not the only consideration for setting prices.