When establishing the prices for your products or services, don’t fall into the trap of establishing an “across board” price margin for all your products or services. Instead, look at each product individually.
Look at this way. You might be able to justify a lower margin for products and services that account for a high sales volume. These products and services may drive your sale volume, but because of the higher volume you might be able to anticipate increased efficiencies in their creation. Also, their cost of sales may actually be lower on these items.
Meanwhile, lower volume products and services might be better priced with higher margins. Since you don’t sell as many of these products and services, you may incur higher selling costs and you may not get the manufacturing efficiencies like you do with higher volume products.
Individual products and services need individual pricing.
John Bradley Jackson
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