What is your goods worth? How much should you charge for your services? How do you settle value of a goods or service? Often this is a very difficult assessment. The old standby answers of, "its value is what someone is willing to pay for it," or for a product, "what it costs to make" are not very satisfactory. Do whether of those answers verily tell us how to settle value? Do those answers tell us what price to put on a goods or service?
When it is time for you to settle the value of a goods or service, you need to ask some questions about what you are selling. I reviewed some of the questions Mark H. McCormack asked with regard to value in "What They Don't Teach You At Harvard firm School: Notes From A Street-Smart Executive" and modified them a bit from my own experiences to come up with this short list of things to think when determining value:
Small Printers
1. What does it cost to produce? While this is not the value, it is a observation when you are determining the value of a product. For a service, you may look at the time and what it costs in time to accomplish the service.
2. How unique is it? Is this a goods or aid that population can buy from competitors? Are the competitors economy than you? What sets your goods or aid out from the rest? What is the advantage of your goods or aid compared with the competition?
3. How speedily do your buyers need what you are selling? At first, the experts didn't think FedEx was a good idea. Who would pay extra to have things overnight? Now, speed is an ever expanding component to a goods or service's value. I know in our law office, speed is sometimes extremely prominent to clients and they will pay extra for it.
4. What is the replacement cost? Something that is verily supplanted may not be worth something that is hard to come by.
5. Is this a fad item or an item that population will be extremely passionate about? Is it a selected goods or aid population would be willing to pay more for? What is the perception of value of the goods or service? Sometimes raising the price of something creates value because population expect it to be worth more due to the higher price tag.
6. Is this a one-time deal or something that will continue on into the future? Are you trying to compose a relationship with the consumer to continue with products or services? Do you sell a printer for less because you will make money selling ink into the future?
These are only a few considerations when determining the value of a goods or service. Don't be afraid to price something higher if that is the value you have considered it is worth. As I stated under estimate five, the higher price may in fact help sales due to consumers believing it has more value because of the higher price tag.
Even after you think all of the above as well as other variables that pertain to what you are selling, there is still a bit of guess work complex in setting the "right" price. Hindsight can prove your price was too high or too low. Too high and you can always cut the price to get rid of inventory. Too low and you can raise the price for time to come consumers, or at least know great next time.
Determining value is not an exact science. However, if you think some of the questions presented in this record you will have a great grasp of how to price anything it is you are selling.
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