When you have a product or service to offer, how do you determine how much to charge for it? One successful entrepreneur has some advice for you.
Jodie Fox is an entrepreneur and the co-founder of Shoes Of Prey, an immensely successful e-commerce business that started in 2009. For budding business owners who are planning to launch a new product or a service, it can often be difficult to determine how much your offering should be priced at.
Fox recommends thinking about the following things when deciding how much you should charge:
- Make sure you’re making enough of a margin.
- Can the people you want afford it?
- Cost of goods sold: The hard cost of your product, including production, overhead and shipping fees. Then you consider the margin on top of that.
- Geography: Taxes and shipping costs.
- Branding: Where are you positioning your offering? Mass market or high end?
You can find out more about why all of these points are important when determining the price of your goods and services by watching the video above.