Was wanting to write a note on pricing for quite some time. Realised that it is too vast a topic. I intend to begin a series of notes on that and here is a rough note on the different things that came to my mind when I thought of writing something about pricing. Would try to take each of them in some depth and with examples.
Feel free to put comments on what more could be covered.
Deciding the prices
How much money did I help the customer make?
How much money did it cost me?
Customer Facing: Over pricing and Underpricing
Product/ service Perception
discounts, warranties, guarantees,credit policy
I will deliver X by Y date
Make a spreadsheet with:
Investment: split that into annual dep numbers or replacement capital
FIxed cost: operating costs
Revision of prices? Revision of margins?
How to raise prices?
New packages/combinations for increased margins