In this video, Mary Peabody, Community Economic Development Specialist, University of Vermont Extension, gives a review of the pricing process and adds some new tips and ideas on how to ensure you are maximizing your revenue.
Discussed are aspects of identifying costs, knowing the factors that may influence what you can charge, and some survival tips.
In addition to the pure business items that are included in the pricing model, Mary discusses both the psychological and emotional aspects of pricing. She identifies how some goods are seen more as a luxury item, something a customer is wiling to pay extra. The customer might also be willing to pay more if the product/service is in its growth phase.
Throughout the video, Mary urges the small business owner to know their costs before deciding
on a price. And she says it may not be a good idea to just “follow the herd,” or price at the level of your competition.
Hope you find the information helpful as you develop prices in your business. Click here for the video.