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Determining How Much to Charge
The Entrepreneurial Mind: “There is a good article at NFIB on pricing strategies for new businesses. It offers a simple approach that helps take some of the guess work out of pricing. Do your homework of what the market is charging. Make sure that what you charge covers all of your costs, including overhead. An operating margin of 50% to cover overhead is a good rule of thumb. And finally, build profit into your pricing strategy. Making money is your goal, and you can only create profit if you charge enough.”
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