Kody Wirth is a content writer and SEO specialist for Palo Alto Software—the creator's of Bplans and LivePlan. He has 3+ years experience covering small business topics and runs a part-time content writing service in his spare time.
1 min. read
Updated January 5, 2024
Pricing products or services can be difficult.
You can’t just pick a price out of thin air and hope it will lead to profitability.
To do it right, you must understand your costs, customers, competitors, and goals.
But how do those translate to setting a price? This guide will show you.
Make pricing easy by knowing the basics.
Learn about the common types of pricing strategies, how to apply them, and what it takes to choose the best strategy for your business.
Product pricing can be broken down into four simple steps: identify costs, consider profitability, analyze the market, and test.
Service pricing is far more subjective. While the steps are similar to pricing a product, additional considerations must be made.
Finalizing your pricing strategy is one of the last steps you need to take before it’s time to document everything about your business. Along with your pricing, you should have landed on a solid business idea, validated it, conducted market research, and decided on your business model.
If you’ve completed those steps, take what you learned and turn it into a plan for running your business. You’re ready to write a business plan.