How can you competitively price your products without knowing what your competitors profit margins are?

Question

any ideas...?

great !! but -- what if youre selling the same product?

identical products..

Answer 1

You have to first play the Business game. I learned this is Small Business Management in college. First you have to price at a level that cover costs and your income. This include utilities, employees etc. In time you may increase your product/service, but, it must be gradual. As your quality becomes good/bad in your customer base you can adjust up/down to keep growing. This a street explain.
The example; Look at Bread. Go to Kroger or whoever big in your area. Wonder bread is around $1.80 a loaf. Tender Crust or whoever is .79 a loaf. They are both competitive and make a profit (They both staying in business and paying their costs/employees). But, they differ in when they started building the customer base and quality.
So, bottom line. Tender Crust may not know Wonder Breads profit margin, but, they know, with their costs and customer base they make a profit. They may not make what Wonder Bread make, but, they make a living for the amount of people the employ,