Am I pricing my products and services correctly?

You need to find a base price which can be done through each of the below pricing models.

Cost-based pricing – this is the simple method of calculating the total cost of making your product/service and adding a percentage markup to determine the final price. Costs can include material costs, labour costs, overhead cost (indirect cost).

Market-orientated pricing – this can be used to compare similar products in the market and help you decide the selling price based on that factor. You can make your selling price below the market to attract more customers, above the market to convey higher quality or you can copy the market price to maximise profit whilst staying competitive.

It’s best to try testing different prices and offers to see what customers in your target market react to.