How to Determine Product Selling Price?

[Suba]

After producing goods as a businessman, we must determine a selling price that is sensitive, which will be the main consideration for customers to buy a product. Therefore, as a businessman, we must be able to determine the right selling price so that sales turnover can reach the target.

There are several ways to determine the selling price of a product, which are often applied by business people, including:
1. Determine the selling price based on production costs and expenses plus the expected profit.
2. Determine the selling price of products based on similar goods on the market, although not necessarily the same.

The two methods of determining the selling price of the product above, which one do you think is the most appropriate or do you have another way to determine the selling price of the product, please share your opinion.

 

[Starmix]

@Suba, I prefer the number 2. Determine the selling price of products based on similar goods on the market, although not necessarily the same. I based it on my business offline, I gather data about the pricing of the milk tea despite the pricing is uniform, but I noticed others were overpriced so I did not do the same, so people prepare to buy milk tea at my counter. Price matters a lot in business.

 

[Suba]

Whatever method you apply, the most important thing is that the goods are easily recognized and the prices are affordable for consumers, and the quality is guaranteed so that it will attract new customers. The method is just a theory that must be adjusted to market prices.

 

[hastral45]

What determine the selling price of Commodity is the overall cost of production of such product together with the profits intended to be made from it. The cost of production involves production cost and other logistic cost.

 

[Starmix]

Pricing the products depends on your own method and capital. But never exceed the price too much or else no one will come to your business center. You might wonder why but do an on-the-spot review of your price strategy.

 

[Suba]

What determine the selling price of Commodity is the overall cost of production of such product together with the profits intended to be made from it. The cost of production involves production cost and other logistic cost.

I agree with you, using the cost accumulation method, starting from production costs, operational costs etc. But unfortunately you forgot to add the desired profit rate, for example 20%. You also need to consider whether the price of your product is too expensive or too cheap.

 

[Springtime]

When determining the price of your product, you have to consider the cost of production and other overhead costs. You also need to check out the price of similar products offered by competitors.

 

[Suba]

When determining the price of your product, you have to consider the cost of production and other overhead costs. You also need to check out the price of similar products offered by competitors.

Overhead costs are part of production costs, after you have calculated the cost of good sold, you can add other costs such as shipping, packing, as well as the desired profit.

 

[hastral45]

After producing goods as a businessman, we must determine a selling price that is sensitive, which will be the main consideration for customers to buy a product. Therefore, as a businessman, we must be able to determine the right selling price so that sales turnover can reach the target.

There are several ways to determine the selling price of a product, which are often applied by business people, including:
1. Determine the selling price based on production costs and expenses plus the expected profit.
2. Determine the selling price of products based on similar goods on the market, although not necessarily the same.

The two methods of determining the selling price of the product above, which one do you think is the most appropriate or do you have another way to determine the selling price of the product, please share your opinion.

The factors mentioned above are the primary determinant in fixing product pricing.
Production cost which is the average cost of producing the products and the expected profits.
Likewise, we should not forget the price of other rival products in the markets.

 

[uptrendfinancialsignal]

The selling price of a product is solely determined by the cost of production and the overall cost of running the business.

 

[fcbetting]

How to determine if you don't have visible cost? Like use free hosting and free software. You can charge electricty but your computer would work working or project or just watching movie on it.

 

[Heatman]

As long as it is not a new product that has never been in the market, you already have the alternative in the market to use and negotiate the price that you are going to sell the product.

 

[uptrendfinancialsignal]

The price of the items that are similar to those in the market could be used as a yardstick to determining the selling price of your product as well.

 

[hastral45]

As long as it is not a new product that has never been in the market, you already have the alternative in the market to use and negotiate the price that you are going to sell the product.

At times prices do change for old products as well. The current prices is based on the current cost of production. We all know the prices of commodity do change sporadically. The price we bough last months may changes in the current prices now.

 

[Shavkat]

In my view, you need to get the total cost of the product, such as the material and labor cost. Then, the pricing will depend with these things. Usually, it is three times of the total cost of the product.

 

[Stardom22]

There are so many factors that can affect the setting for the selling price for the business products. The main common ones are:
The cost of the production
The selling price of the competitors
The quality of the products
The quantity of the products and so on.

 

[Shavkat]

There are so many factors that can affect the setting for the selling price for the business products. The main common ones are:
The cost of the production
The selling price of the competitors
The quality of the products
The quantity of the products and so on.

I agree with you. The prices vary from one company to another. It does fluctuate based on the country's economy. That is why the pricing should be accurate as much as possible.

 

[cherry123]

I think the most for me is determining the selling price based on production costs and expenses and even with the expected profit.to ascertain the selling price of the product

 

[Heatman]

At times prices do change for old products as well. The current prices is based on the current cost of production. We all know the prices of commodity do change sporadically. The price we bough last months may changes in the current prices now.

This is the reason why markets survey constantly is very important because it will help you to understand how the price is behaving in the market currently before you fix your own price.

 

[cherry123]

Yeah it is always good to stay afloat and know what's happening in the market you would need to always know the price for your products and do well to fix yours too