Is That Price too High or too Low?

By Courtney Brown and Anthony Marshall

 

Did you know that most entrepreneurs' first attempt at starting a business fails? Some reasons for this are that entrepreneurs sometimes neglect to consider every aspect of business; and in turn price products or services too high or too low. If this happens and the prices are too low for the expenses of the business such as the cost of employees, insurances, licenses, and price to produce product or service, etc. then a new business can quickly crumble. On the other hand, if the prices are too high for a respected product or service and customers can find the same services cheaper or for a relative price range, this could avert customers away from a new business; especially because customers may question the new company's reliability. There are things a business owner should factor in when establishing prices. Some of these include good customer service, licenses, taxes, workman's compensation, expenses, and both the economic and financial positions of not only the business but also of potential customers.

 

To view some different entrepreneurs that at first failed but then found success click [Here]