Wondering what steps you should take in pricing your product?
Determining the sales price of a product depends on three factors:
- Your sales model and whether you are doing direct or indirect sales.
- How much end customers are willing to pay for a product, which you will know from your customer research.
- The raw cost it takes to get your product manufactured and out to customers.
Part 1 – The physical product (the stuff you hold in your hands)
Part 2 – Manufacturing and testing (making the stuff)
Part 3 – Packaging and Shipping (sending the stuff)
Part 4 – NREs (a hidden costs that can sneak up on you)
Part 5 – Profit (everyone’s favourite!)