How to Price a Product?

There are many ways to price a product. First, you have to look at your direct cost of making or obtaining the product. If you don’t want to make a direct profit, then your direct cost can be what you price the product. However, most people desire to earn a profit, and thus, determining the percentage of profit you desire is the next step, and then reducing it to make it reasonable. It is also important to conduct market research to determine what the same or similar product is selling for in the industry. To be competitive, pricing your product must include keeping the price above what it costs to make or obtain but within the range of what others are selling it for, unless you can justify why it costs more (for example, if it is of a higher quality, has more features, etc.).