Pricing goods and services is one of the most difficult tasks in
the business arena. Many small businesses fail to make a profit
simply because they don't consider all the factors necessary to
make prices competitive and yield that elusive profit. Before
setting prices, you must understand your market, distribution
costs and competition. Remember, the marketplace responds
rapidly to technological advances and international competition.
You must keep abreast of the factors that affect pricing and be
ready to adjust quickly. This Financial Guide does not attempt
to be an in-depth discussion of pricing analysis. Rather, it is
intended only to provide a basic review of the several pricing
strategies - and perhaps encourage you to take a fresh look at
your present strategies. Professional financial guidance will be
helpful in working up and evaluating the financial aspects of
the analysis for your financial resources. Retail Cost and
Pricing A common pricing practice among small businesses is to
follow the manufac