This is one of top post in my website www.marketingplanbook.com . i thought to share to more people, i made it in slides and PDF so it can travel. In this slide, i added another point i.e. Be Authentic. Have fun!

1. EIGHT+ONE TIPS
on Pricing
Fundamentals of Pricing for Profits!
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2. Advertorial

3. Pricing is super important for " aking it sells and " aking your
m " m
profits . Agree But often times for new business owners, they
” ?
are sometimes overcharged and on the other undercharged.
Thus only profiting is just a dream. Because they lose both
ways; overcharged they get less sales, and undercharged they
make losses for every additional output.
What are things to look for when we do our pricing plan?
How to determine the correct pricing strategies for our
product?
guide.
Here are EIGHT Tips on Pricing as a guide
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4. 1. Have A Pricing Plan
- I always emphasized on having a plan including pricing plan. it’s
like this, before you launch or introduce your product/service, I
suggest you to take a piece of paper and write down what you
plan to sell and how you plan to price it. Write it down and see it
for yourself. Does those information make sense to you?
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5. 2. Know Your Segment
- Different price is for different segment? Yes, this is fact. I know
someone who sells women dress that he gets from a supplier
price $45 for segment A and charge $95 for segment B. Segment
A receives the dress in a plastic bag and segment B in a striking
colour brown bag. Got it?
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6. 3. Know Your Cost
- Many costing methods covered in my book Marketing Plan
Breakthrough S6PEC such as cost plus, mark up and so on. But
the gist is, “know how much you paid for the product”. The cost
you should include are raw material, transport, miscellaneous and
time. Then you break them down into per unit cost to see how
much is the cost distribution.
- If you are running a restaurant, factor in your fixed cost like rent,
overheads and utilities. If you are selling services, most probably
your additional unit production lessen at least by 30% – 50%. So
do the math!
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7. 4. Set Your Pricing Point
- Pricing point should include your minimum profit you want to
make. Say you use mark up pricing at 20%, therefore your $10
cost price should be sold at minimum at $12 because you marked-
up 20%. But as question whether 20% enough for you to sustain
business?
- Therefore, when you set pricing point please include your risk
factor as well. for example slow season, pilferage rate, spoilt and
so on.
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8. 5. Multi Pricing
- Lately I realize multi pricing can give greater profits if done correctly. I
have a friend who runs a toy shop and whenever certain toys on high
demand, he will increase the price that is enough to make him keep up
with the competition (when he priced lower, customer may think his
product is inferior and when he priced too high, customer may think it’s
too expensive!).
- What he does is to gauge the demand and look around pay attention
to his customers and competition. He will reduce certain less-
demanded toys and display it at the main storefront. When customers
are “captured” with the cheaper toy, he goes in and then he will see the
high-demand toys and the rest is better sales and greater profits.
customers and sellers happy! FEW SOLID SHEETS
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9. 6. Keep Your Overheads Intact
- This is important when you have sales team working on project
selling (involve in large contracts and items) or you work with
distributors. Sometimes, after working with them for a particular
project, you may realize your cost run too faraway and eat up into
your profit.
- I recommend to have constant check and monitor the
performance vs incentives vs achieved sales.
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10. 7. Scan Your Environment Pricing
- It is common now to have competition in any business you go.
there are always someone who has done it first, therefore I
recommend to do a little benchmarking. But not getting
overwhelmed with the data, but rather “be in the know”.
- For example consulting is becoming more expensive and
sometimes too expensive. Are you willing to make it cheaper and
still offer the same or greater material and content? I do! ☺
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11. 8. Trend
- When the trend comes, demand will surge like crazy. I still
remember a friend of mine who imports Tamagotchi (virtual pet) 10
years ago. It was “D” thing and it was super hot. One Tamagotchi
can sell up to $40 and that is consider average price. He bought
tonnes of those pets and within 2 years those pets is a fad. no one
plays Tamagotchi anymore because many already can afford Sony
Playstation and so on.
- Watch the trend because when the trend goes off, you are sure
to make losses! Watch out.
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12. 9. Be Authentic
- Pricing is about the perceived value of the product. If it’s
perceived high and highly valuable, it sells. This is observed
usually auction in paintings, collectibles and limited edition items.
Furthermore, this type of pricing is niche and it takes long time to
reach such pedestal.
- It is better to be authentic in pricing, where majority of the
customers feel at ease with it. They believe genuinely that what
you provide matches the value they ought to pay. Besides, cut all
the strings attached. Make it hassle free!
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13. Thank You
Fundamentals of Pricing for Profits!
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