6 Factors That Determine Product Price | Make Money Online Daily
Even though it would be absurd to claim that the price of the product is all there is to its success of a business, it is definitely one of the most important factors determining how well it fares on the market. The greatest customer service, most brilliant marketing effort and even the optimal business model won't be enough for success if your product is considerably more expensive than that offered by your competitors. Furthermore, there are some costs your company simply cannot endure if it intends to stay profitable. Nevertheless, you cannot just arbitrarily raise or lower your price. Namely, there are some factors that determine just how high or low you can go and here are six of them. 1. The cost of making the product The first scenario is the one in which you are actually making the product and it is the one that is probably the simplest one to calculate. Namely, you can start by calculating the direct amount of materials you are required to purchase in order to make the