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Small Business Hub: A Research Guide for Entrepreneurs

Price

One of the essential, and most difficult decisions facing every business is choosing what price to offer their product or service for. Several considerations must be taken into account when determining pricing, including:

Tips

Starting points:

  • competitor pricing
  • your branding and quality strategy (such as cut-price or premium)
  • who your target customers are
  • desired profit margin.

The following resources may be useful in determining what price-point is most suitable for a product or service.

  1. Consider and research the market segment (customers) you are targeting. What price are they willing to pay?
  2. Research the price-points of competitors in your market segment.
  3. Consider your business branding strategy. Are you looking to create a high quality, high cost brand, or a cut-price, low cost brand?
  4. Assess your costs and desired profit margin/revenue. What price will deliver you sufficient profit whilst still being attractive to customers?

Suggested strategies:

  • Use search engines and catalogs to examine competitor pricing. Some industries, such as agriculture and pharmaceuticals have pricing databases.
  • Research your customer base through census data and surveys, to understand what price they can afford to pay, and what they are willing to pay.

Select Resources

The following materials link to fuller bibliographic information in the Library of Congress Online Catalog. Links to additional online content are provided when available.

The subscription resources below marked with a padlock  are available to researchers on-site at the Library of Congress. If you are unable to visit the Library, you may be able to access these resources through your local public or academic library.

These are freely available online sources provided by government agencies, trade publications, and organizations.