3. COMMON TYPES OF PRICING
HOW TO DEVELOP PRICE
GOODS AND SERVICE
Pricing is the act of determining the value of a product or service.
Developing is the following step after we price the product in order to
put the accurate price not too high and not too low including the pricing
strategies, legislations, what your price should include, and where to
1. DEFINITION OF DEVELOPING ,PRICING GOODS AND SERVICE
5. Correctly pricing goods and services is a tricky challenge facing
small business owners. To win market share and retain customers,
you need more than just a high-quality product. You must also have
a pricing strategy that keeps your product competitive with similar
products while covering the fixed costs and variable costs
associated with running a business.
2. WHY WE NEED TO DEVELOP AND PRICE GOODS AND SERVICES
6. COMMON TYPES OF PRICING
With value-based pricing, you set your prices
according to what consumers think your product
1. VALUE BASED PRICING
7. When you use a competitive pricing strategy, you’re
setting your prices based on what the competition
2. COMPETITIVE PRICING
3. PRICE SKIMMING
If you set your prices as high as the market will
possibly tolerate and then lower them over time,
you’ll be using the price skimming strategy.
4. COST-PLUS PRICING
This is one of the simplest pricing strategy. You just take
the product production cost and add a certain percentage
to it. While simple, it is less than ideal for anything but
8. PENETRATION PRICING
In highly competitive markets, it can be hard for new companies to get a
foothold. One way some companies attempt to push new products is by
offering prices that are much lower than the competition. This is penetration
This strategy is popular in the commodity goods sector. The goal is to price a
product cheaper than the competition and make the money back with
In the same industries, you can get away with constantly changing your
prices to match the current demand for the item. This doesn't work well for
subscription and SaaS business, because customers expect consistent
monthly or yearly expenses.
10. HOW TO DEVELOP PRICE
GOODS AND SERVICES
1. STUDY THE MARKET 2. ASSESS YOUR COSTS
On an ongoing basis, a business must
cover both fixed costs and variable
costs that go into making their product.
If you're bringing a new product into an
existing market, you need to research
price points for
11. 3. DECIDE HOW YOUR PRODUCT
WILL BE SOLD
A mixture of methods might be appropriate.
Effective sales methods include face-to-face, email,
telesales and ecommerce.
Selling face-to-face is best for high-value sales and for
complex products or services that require demonstration
Email, telesales and ecommerce are more cost-effective
options, especially for lower-value products.
12. 4. DECIDE WHETHER YOU’RE AIMING FOR THE
HIGH-END, MIDDLE, OR LOW-END CONSUMER
A high-end customer cares a lot more about the marketing
messages they’re receiving and the customer service.
A high-end customer will be more likely to stay up to date
with the last trends, like user experience on website and
popular fashion designs, etc.
Middle, the price is not too high or low and product also
suitable with the price and quality.
Low-end customers tend to have busy lifestyles and take a
lot more convincing to buy anything expensive.
13. Most small business
need time to assess
the true market
value of their goods
If sales are low, you
may have to offer a
sale price(or a slash
normal retail price).
In conclusion, pay attention to your customers follow their needs and wants to prosperous lifespan of your product.
5. MONITOR PROGRESS OVER TIME