PeerSpectives: “The easiest way to set a price is to calculate the cost of producing a product (direct costs, overhead and labor), add in a profit margin, and stamp the resulting number on a price tag. This method requires very little research. However, in the complexity of the marketplace, it is not likely to be very effective at winning sales or market position. You also may be pricing your product below what your customers would be willing to pay. Setting a price based on the value of the product or service to the customer may be smarter.”

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