THE BIZ WIZ 

What are some pricing strategies that I can consider that might improve my bottom line?

1. The first, and most obvious, is to make sure the product or service makes more than it costs to produce.

2. Offer your products or services at different price points to see what prices generate the most revenue.

3. Use figures that end in 5, 7 and 9 because consumers will round down a price of $19.95 to $19 rather than up to $20.

4. Add a predetermined profit margin to the cost of a product.

5. Try doubling the price (known as “keystone pricing”) from what it costs to produce.

6. Offer different prices to different market segments.

7. Try selling several items or services together for one price.

8. If you can still make a profit by pricing below your competition you may make more profit by selling more volume.


If you would like to learn more about pricing your product or service, visit www.gainesvillechamber.com, “Chamber Services.”  Under "SmallBizU," select "Pricing Strategy and Tactics" from our nineteen college-caliber courses.

The Chamber also offers Consultation and Mentoring Programs, providing one-on-one pairing with a fellow Chamber member who has an expertise in a specified field of interest.  Just go to “Chamber Services” and click on “Business Resource Center,” complete the “Consultation Request Form” and fax it back to Tim Ledvina at 334-7141.

Do you have a question for the Biz Wiz?  E-mail communications@gainesvillechamber.com