Oklahoma / Tulsa Joiint Seminar @ okptg.org

It’s generally agreed that the primary goal of business is to make a profit. But many small businesses fail to master this objective simply because they don’t consider all the factors necessary to make prices competitive and yield that elusive profit.

There are several pricing strategies; select the approach that will make your goods or services the most competitive and will help you reach your profit goals...There are any number of factors that influence a consumer’s decision to buy from a certain business, including price, convenience, and courteous and attentive service.

Competitive Position
An alternative is to base your price on those of your competitors...There are any number of factors that influence a consumer’s decision to buy from a certain business, including price, convenience, and courteous and attentive service.

Pricing Below Competition
... pricing goods below the competition can be difficult to sustain. Why? Because every cost component must be constantly monitored and adjusted. It also exposes a business to pricing wars. Competitors can match the lower price, leaving both parties out in the cold.

Pricing Above Competition
This strategy is possible when price is not the customer’s greatest concern. Considerations important enough for customers to justify paying higher prices include...delivery, speed of service, satisfaction in handling customer complaints, knowledge of product of service, and helpful, friendly employees ...

Cost Factors and Pricing
Every component of a service or product has a different, specific cost. Many small firms fail to analyze each component of their commodity’s total cost, and therefore fail to price profitably. Once this analysis is done, prices can be set to maximize profits and eliminate any unprofitable service. Cost components include material, labor and overhead cost ...