premmathan
18-10-16 0 Hits

This story (fully described in Fast Company Hard On Demand Review December '03 issue), highlights a vital point. In general, we want to price with a goal of maximizing profits, not sales volume. Too often, business owners look at gross revenues (sales), when the net profit is what really matters. We could have sales of $250,000 a year, or $1 million, and be losing money. More sales do not necessarily mean more profit. Having sound accounting and analyzing financial reports regularly are essential. It's important to remember that profit is not a dirty word. A business must earn a profit to stay in business. Whether a particular business' profit is fair or is excessive is another matter - that could be the subject of another article! Underpricing is a common problem for women entrepreneurs, which happens for several reasons, one of which may be that we don't know how to properly set a price that will yield a fair profit. Another reason is we often undervalue ourselves and our product and/or service. Furthermore, many of us have concerns about fair economic access to our products and services.The first problem of understanding the best way to approach pricing one's product or service is solved by getting sound business advice, which is readily available at small business centers around the nation.

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