What’s the best price to charge for your products or services?

 It depends on what your customers can afford, what they think they should pay, and what you think they’ll pay. The actual price is somewhere between these three variables.

Pricing is one of the most important decisions in business. It can make or break a company. And yet hardly anyone knows how to do it well. Most companies, when asked how they know what price to charge for their product, will either say “We looked at our competitors”, or “We looked at what the market would bear.” If that’s all you know, then I’m sorry to tell you that you’re guaranteed to lose.