2007-04-10 11:26:21 · 4 answers · asked by Jon L 1 in Business & Finance ➔ Other - Business & Finance
Simple economics. Any premium above your cost of production or acquisition is profit. You want to get a high price...as high as the market will bear.
2007-04-10 11:31:13 · answer #1 · answered by tallandslimman 3 · 0⤊ 0⤋
Depends on how the good is perceived by the market. If there is tremendous competition and you can make a case of higher quality then price it higher. If you want to get into a highly competitive market and your goods are of the same value then price it lower for value perception. Audi's and VW's are basically the same cars, yet Audi's sell for so much more because of perceptions. Same goes for Toyota/Lexus, Nissan/Infinity and Honda/Acura. Good luck.
2007-04-10 18:32:02 · answer #2 · answered by Anonymous · 0⤊ 0⤋
I should think you would want to start low, to incite people to come over and purchase, then gradually increase a few items here and there.
2007-04-10 18:29:11 · answer #3 · answered by robert43041 7 · 0⤊ 0⤋
know you cost and then add 20-30% for yourself....provided of course the competition is not lower, adjust accordng to the demand, the supply and the quality of your product compared to others.
2007-04-10 18:43:22 · answer #4 · answered by Anonymous · 0⤊ 0⤋