Pricing your Products 3
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Now here comes the nitty gritty, the actual math. Numbers do not lie, as far as most of us are concerned. So if you want to justify the price that you have in mind, you have to have the numbers and the figures to back your claim and reasoning up.
Ask yourself first, as a customer, how much are you willing to buy your own stuff. This might be an easy question, but you'll falter when you realize that, in 9 out of 10 cases, you wouldn't even buy your own product. Why is that? Because you focus on the fact that you see the product as something of your own craft and effort. This usually leads to lack of judgment, insertion of bias and other things.
Anyway, first things first. How much are you willing to sell it? Which, if we reconstruct, how much are you willing to let go? Author here suggests that you go as low as possible, from any choices your mind might think of. This includes the base cost for the materials you used and for how long you worked on it. Only then can you entertain thoughts of placing in additional costs like labor, transports and tax.
When you get the overall sum of everything, find the cost and divide it according to the numbers produced. What you have then, is the base price for your products. The next bit is paying yourself for the labor. Unassumingly, you employ yourself to make your product. By default, it's not free. In business, nothing is truly free. Remember that. Stack what you will pay yourself with into the product's base price.
Take on a customer's point of view and see if you would buy your own product. If not, the courses of action you will have to take will either have to be to raise the quality and utility of your craft, or to lower the price itself.
Article Source: Articlelogy.com
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