In my blog entitled What Key Things Must An Entrepreneur Know About Pricing, I wrote about various pricing methods and approaches such as cost-plus, penetration, premium, incremental, promotional, luxury, value-based pricing etc. I also explained something about the impact of overheads on pricing, and some aspects of the margin and mark-up. That article followed my earlier one entitled What Key Things Must An Entrepreneur Know About Business Profitability, in which I wrote about revenue generation, fixed and variable costs, the break-even point and the management of the inter-relationships therein.
Today, I thought I should expand a bit on the aspect of pricing. Being an entrepreneur, I believe you already know the importance of pricing to your enterprise. Don’t you? There are some folks who have very good business concepts and models but they just mess up their pricing strategies entirely, and often come back crying that the business is not generating enough revenue. Of course there might be other factors contributing to this, but I would like to elaborate more on the pricing aspect. So, what are other pricing tips that an entrepreneur should consider?
I think we have had enough for today. These key things an entrepreneur must know about pricing are necessary for your success in business. This blog specifically also adds value to my previous two blogs I mentioned above. I advise you to read those blogs, if you haven’t. I know some people just like avoiding some things even if they are necessary and good. I desire you to be a successful entrepreneur. It’s my passion.
Bye for now,
The Wise Entrepreneur