Pricing Considerations for Ultimate Growth
7/21/2008
by Shelly Weaver, E-Magnify Staff

Pricing is one of the four Ps of the marketing mix. The other three aspects are product, promotion, and placement. Entrepreneurs and business owners sometimes have a difficult time developing and finalizing price for their products.  Being able to do so is both an art and a science.  It’s also a combination of both fixed costs and implied costs.

Fixed costs are actual costs that you have into the product.  Those costs include but are not limited to raw materials, design costs, and other materials.  Implied costs are costs entrepreneurs sometimes overlook; costs that they put into the start-up if the business and even overlooking the increased price to deliver.  These costs can also include the time it took for the entrepreneur to develop the product. 

It’s important to do your homework. It’s essential for entrepreneurs to consider their competitors.  Look into your area and surrounding areas for products similar to yours.  Evaluate products that are similar to your product or business.  If your product or service is the same or similar, price your product in the same general area. If your product is different, adjust your price up or down based on features, benefits, and value derived, considering the fixed costs and implied costs discussed above. 

Once you’ve determined your pricing method, the next step is to develop a variety of pricing options. Know that the only way to optimize price is through tiered pricing and testing your audience.  This may even be as simple as a variety of pieces within your product.  Take a box of note cards for example; entrepreneurs should think of a single card price, a box of three cards and a box of eight cards just to start.  The rule of thumb is that the more products in the box sold, the better the ‘group’ price should be.

Do not make gut decisions. Don’t undercut yourself.  Consider each cost and consider your customer’s demographics. 

When developing your pricing strategy be sure to choose the strategy that fits your customers and your market area as well as the costs you have into your product. 

Looking for the “WriteIdea”
Calling all entrepreneurs. WriteIdea is looking for the best of the best in the world of business plans. WriteIdea is designed to encourage entrepreneurial thinkers in our community to produce a business plan that is ready to implement. The competition will bring together regional plans in the provided categories exploring the development of young companies. A handful of entrepreneurs will receive cash prizes of $5,000 each, totaling $25,000 to help with start-up costs or the capital to help bring their business to the next level.

The process is simple. Log onto e-magnify.com/writeidea and submit your application. Deadline for applications is Oct. 31. Applicants need to provide a brief executive summary of their business plan idea and some pertinent business information. You can then begin developing your plan and be eligible for the prizes that will allow you to grow your future.

Former Business Plan Winner Had WriteIdea
Amy Veltri is an entrepreneur in all senses of the word. Veltri had the right idea to start a new business with growth potential and used the WriteIdea business plan completion presented by E-Magnify as a springboard. Bitten by the proverbial entrepreneurial bug following a lack of advancement opportunity, Veltri has the unique perspective of being a woman-owned business owner in a highly dominated male field.

Veltri’s previous professional experience included being responsible for managing a staff of several junior technical personnel and securing and managing over $1 million annually in project work. As a successful business owner, she has far surpassed the competition, by increasing her company’s gross revenues from $50,000 less than three years ago to approximately $800,000 in 2004.

The WriteIdea business plan competition applications deadline is almost here! Call 724.830.4625 for more details or click here for your application now

How to Market Your Event
By definition, event marketing is the promotion of an event. This marketing typically includes promotional activities involving an event such as a sporting or social event, designed to bring a product to the attention of the public.

Social Networking - A Must For Businesses Large and Small
Social networks are the new business communication tools that business owners and leaders tend to overlook, but shouldn’t. The scope of these expansive networks can lend to a multitude of opportunities that might not otherwise be available.

On the subject of social networking, what you don’t know can hurt you. These networks create opportunities for businesses that would not previously have been conceivable. One avenue to approach is to follow blogs and ‘doers’ in your industry as well as that of other industries to keep up with the fast-paced environment.

Becoming A Business Plan Pro
Are you a PRO? Business Plan PRO is the everything-you-need-to-know software that is everything you need to write a successful business plan. You can get started quickly with over 500 real-life example plans that provide the inspiration you need to get going quickly and finish easily. You will save time with the EasyPlan Wizard that guides you through every step of the process and automatically creates a structure that fits your unique plan and business needs.

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