What Are the Factors of Pricing?
Pricing is industry-specific and should be based on your break-even point, operating costs, and target profit margins. Reviewing industry benchmarks helps you understand what the market can sustain.
Location also plays a major role. Overheads such as rent and wages vary significantly between suburbs and city centres, directly impacting pricing decisions.
By analysing your costs and benchmarking against your industry, you can reverse engineer a pricing strategy that protects margins and supports profitability.
About author
Shehan Wijayasinghe
Accounting
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