The New South Wales Government information website for people starting, running or growing a small business.
Pricing of products and services is a very important step in starting a small business.
Pricing should dovetail with the strategic, marketing and financial plans for the business.
This will ensure that the business generates sufficient gross margin to cover product/service costs and overheads and achieves profit targets.
Pricing should also dovetail with the marketing plan for the business and reflect where it wants to position itself in the market and address competitor pricing
Consider setting prices for:
Decisions about pricing should dovetail with the strategic, financial and marketing plans. In setting prices consider competitor pricing, total product/service costs and the profit margin required by the business.
“The challenges small business owners face are much the same as larger organisations."
John WebsterYour HRmanager