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How to Set Prices in a Manufacturing Business - A Step by Step Guide to Pricing in a Manufacturing Company
Paperback
ISBN13: 9781090493644
Publisher: Independently Published
Published: Mar 14 2019
Pages: 28
Weight: 0.11
Height: 0.06 Width: 6.00 Depth: 9.00
Language: English
This guide will walk you step by step through all the essential phases of setting optimal prices in a manufacturing company. You will learn exactly how to set prices in a way that will allow you to make money and still be competitive
In setting prices in a Manufacturing Firm, the goal should be to maximize profit. Although some managers feel that an increased sales volume is needed for increased profits, volume alone does not mean more profit. The ingredients of profit are costs, selling price, and the unit sales volume. They must be in the proper proportions if the desired profit is to be obtained.
No one set prices formula will produce the greatest profit under all conditions. To price for maximum profit, the manager must understand the different types of costs and how they behave. You need the up-to-date knowledge of market conditions because the right selling price for a product under one set of market conditions may be the wrong price at another time.
The best price for a product is not necessarily the price that will sell the most units. Nor is it always the price that will bring in the greatest number of sales dollars. Rather the best price is one that will maximize the profits of the company.
The best selling price should be cost orientated and market orientated. It should be high enough to cover your costs and help you make a profit. It should also be low enough to attract customers and build sales volume.
This book takes into consideration all of the above to help you calculate the most profitable prices.
Here's what's in the book:
* Common problems in setting prices and how to overcome them
* how to determine your costs
* Cost calculation examples
* How to set optimal prices
* How to raise prices without losing customers
* How to calculate hourly and project-based pricing
* all these and much more
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