Day 22: Pricing Strategy

[Day 22/30: Product Manager to CEO 30 Day Challenge] Pricing is a key part of your product's strategy. If you don't price your product correctly, it can be a huge detriment to your success.

Here are 4 steps to help you develop the right pricing strategy for your product:

1. Identify your target market. What is my target customer base? What kind of people would be most likely to buy this product from me?

2. Research what similar products are being sold for and how much they cost. Make sure that you're comparing apples to apples—don't compare products that are different from yours!

3. Evaluate how much profit you need from each sale in order for this venture to be successful for you financially, as well as how much profit margin would allow you to grow the business further down the road if necessary (this will help determine whether or not it's worth investing in advertising).

4. Look at the costs associated with producing/delivering your product(s), including labor costs if applicable; then calculate how much profit margin is left after factoring those costs into the equation before coming up with a final price tag that will cover all these expenses without going over budget too much (you want enough funds left over so that there's still room for growth down the road).

As a business owner, you have to make a lot of decisions—and pricing is one of the most important ones.