{"id":42483,"date":"2022-10-13T12:59:51","date_gmt":"2022-10-13T12:59:51","guid":{"rendered":"https:\/\/www.msmehub.org\/?p=42483"},"modified":"2022-10-13T13:04:24","modified_gmt":"2022-10-13T13:04:24","slug":"choosing-an-ideal-price-for-your-product","status":"publish","type":"post","link":"https:\/\/msmehub.org\/staging\/6671\/choosing-an-ideal-price-for-your-product\/","title":{"rendered":"Choosing an Ideal Price for your Product"},"content":{"rendered":"\n

Choosing an ideal price for your product is important as it\u00a0determines the customer segment that will be attracted to your brand. It also defines its classification as a luxury or basic good. Before deciding the price of your product or service, here are some factors to consider:<\/p>\n\n\n\n

1. The Price<\/a> of your Competitors<\/strong> <\/p>\n\n\n\n

Your market competitors could be\u00a0startups or established brands with differentiating factors that make customers rethink whenever they consider switching to a different\u00a0product. You should compare product prices and consider your price falling within the (un)stipulated range. This doesn’t mean that you should copy their strategies however, closely monitoring their patterns will provide insights into the market’s entry points. <\/p>\n\n\n\n

2. Suppliers or Service Providers<\/strong><\/p>\n\n\n\n

The supply chain\u00a0is a key determinant for delivering superb products or services. Some organisations have built solid relationships with suppliers. Hence, raw materials are available all year round at stable prices, which helps to maintain price consistency. However, this might not always be the case as\u00a0prices of raw materials\u00a0could fluctuate, transportation costs may increase, and other unforeseen circumstances might ensue. A selection of suppliers with quality service, integrity and proximity to raw materials is the best bet to make you deliver your products or services at reasonable prices.<\/p>\n\n\n\n

3. Energy needs<\/strong><\/p>\n\n\n\n

Many Nigerian businesses depend on electricity for their energy needs, but this isn’t reliable due to the epileptic power supply. Therefore, provisions for alternative energy sources should be included in your budget to avoid power supply interruptions that would affect your business’s day-to-day operations. Power supply is pivotal in determining the overall production cost.<\/p>\n\n\n\n

4. Cost of Goods<\/strong><\/p>\n\n\n\n

The cost incurred while making a\u00a0product<\/a>\u00a0is referred to as the \u201ccost of goods\u201d. It includes; wages of the labour force, processing, packaging and energy expenses, as well as costs incurred during the procurement of raw materials. These costs exclude transportation and distribution. Profit on any product or service can only be determined with accuracy when the Cost of Goods Sold (COGS) is known. A thorough analysis of units of goods produced and units sold is required for choosing an ideal price for your product. <\/p>\n","protected":false},"excerpt":{"rendered":"

Choosing an ideal price for your product is important as it\u00a0determines the customer segment that will be attracted to your brand. It also defines its classification as a luxury or basic good. Before deciding the price of your product or service, here are some factors to consider: 1. The Price of your Competitors Your market competitors could be\u00a0startups or established brands with differentiating factors that make customers rethink whenever they consider switching to a different\u00a0product. You should compare product prices and consider your price falling within the (un)stipulated range. This doesn’t mean that you should copy their strategies however, closely monitoring their patterns will provide insights into the market’s entry points. 2. Suppliers or Service Providers The supply chain\u00a0is a key determinant for delivering superb products or services. Some organisations have built solid relationships with suppliers. Hence, raw materials are available all year round at stable prices, which helps to maintain price consistency. However, this might not always be the case as\u00a0prices of raw materials\u00a0could fluctuate, transportation costs may increase, and other unforeseen circumstances might ensue. A selection of suppliers with quality service, integrity and proximity to raw materials is the best bet to make you deliver your products or services at reasonable prices. 3. Energy needs Many Nigerian businesses depend on electricity for their energy needs, but this isn’t reliable due to the epileptic power supply. Therefore, provisions for alternative energy sources should be included in your budget to avoid power supply interruptions that would affect your business’s day-to-day operations. Power supply is pivotal in determining the overall production cost. 4. Cost of Goods The cost incurred while making a\u00a0product\u00a0is referred to as the \u201ccost of goods\u201d. It includes; wages of the labour force, processing, packaging and energy expenses, as well as costs incurred during the procurement of raw materials. These costs exclude transportation and distribution. Profit on any product or service can only be determined with accuracy when the Cost of Goods Sold (COGS) is known. A thorough analysis of units of goods produced and units sold is required for choosing an ideal price for your product.<\/p>\n","protected":false},"author":1152,"featured_media":42598,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center 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