How to Set the Right Product Price

Filed Under (Entrepreneur Tips, Melayu Boleh, Motivate Thought) by admin on 22-05-2008

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How to Set the Right Product Price

There are many outside influences that affect profitability and a manufacturer bottom line. Setting the right price is a crucial step toward achieving that profit. Manufacturer is in business to make a profit, but figuring out what and how to price products may not come easily.

Before we can determine which retail pricing strategy to use in setting the right price, we must know the costs associated with the products. Two key elements in factoring product cost is the cost of goods and the amount of operating expense.

The cost of goods includes the amount paid for the product, plus any handling expenses. The cost of operating the business, or operating expense, includes overhead, payroll, marketing and office supplies.

Regardless of the pricing strategy used, the retail price of the products should more than cover the cost of obtaining the goods plus the expenses related to operating the business.

A retailer or manufacturer simply cannot succeed in business if they continue to sell their products below cost.

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PANDUAN MELETAK HARGA JUALAN PADA KEK dan PRODUK MAKANAN.

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