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There are many business strategies to determine the actual price of the products you are selling. Here I will share three approaches that are often used to determine the selling price.

1) The selling price based on cost

Setting the selling price based on cost is the most commonly used. So simple, how much the total cost is added to the desired profit margin, then that's the price of the product.

2) Selling price based competition

How to set the selling price based competition is commonly used by newcomers. Because he's "player" just to sell a similar product that first there, then he will check what price competitors before deciding to set the selling price for its product.

Selling price is usually cheaper than existing products first. Although less expensive, usually remains little benefit. The difference, perhaps a benefit margin less than competitors. In some cases, there is also a bold statement when implementing a strategy based on the selling price of the competition. Usually, it is done by large investors. In principle, it does not matter loss in the early days, the next important continue to profit. Another consideration using a strategy based on the selling price of this competition in order to accelerate market penetration and increase market share of consumers.

3) the selling price based special purpose

The third strategy for the sale price of the product using a special-purpose approach. What goals you want to achieve from the selling price. The goal, to be able to increase the number of sales, boosting the image of the product, or other special purposes. For example, because it will come a new product, then we create old stock clearance. Another example, as it nears the feast of Christmas, the Christmas promo are held to savor the moments.

Regarding about the profit margin itself, each niche can be different. Sale of building materials in contrast to sales margin fortunately selling food or fruits. Each type of product in a single niche is sometimes also can be different. Not to mention, if you apply other sales strategies, such as cross-selling, the price can be different again.

But most importantly, whatever the selling price strategy you use, you should:

Always measure your sales results. Because it's not just related to the pricing strategy you are doing, but also your marketing strategy.

Creative. Do not stick with one way. Always try to think of new ways to sell your products more and more widespread.

Always observe the current market situation.