The right price

Pricing is a difficult thing to do. On the one hand, we all want to maximize profits so the higher the price we sell our goods or services the more money we generate. On the other hand, charge too much and the buyers will find an alternative (with one alternative being simply not to buy). On the third hand (not sure who has three hands but…) you want to set prices in a way so that everyone is happy.

The ideal price is one where the buyer thinks the price is fair (not necessarily low, but fair) and wants to buy again in the future while the seller thinks the price is fair and will continue to profit in the future.

Finding that right price is difficult but it’s worth working towards because while high prices now might maximize short term profits, the right pricing will maximize long term profits and viability

Have a great day!

Lawrence

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