Pricing for a Profit - April 2020

By R. Lee Rust, Florida Corporate Finance
Thu, Apr 16, 2020 at 8:10AM

We immediately started discussing a calculation based on the cost to manufacture plus a reasonable gross profit. “Wrong,” the professor interrupted, “first do a market study to determine the maximum price you can charge and still sell appropriate quantities of the product. Then
calculate the cost of manufacture only to determine if production of the product is attractive.”


Setting sales prices is an art, not a science, and is based less on product or service cost than you might imagine. Markets do, and should, determine prices. Therefore, market analysis is an extremely important part of any pricing decision. Read more


Bookmark & Share



Popular tags on this blog

Asphalt | Assignment of Benefits, AOB, scams, FL | Coatings | Convention & Expo | COVID, hurricane season | Cyber Security | Finances | Financial Strategy | Florida Building Code, roofing in Florida, roofing code in Florida | Florida Legislative session | Florida legislature, legislative news | FRSA's Building, FRSA's New Building | Heat illness, roofing heat illness signs, heat illness prevention | IBHS FORTIFIED Roof program | President's Column | Roof Drainage | roofing apprenticeship, roof training, training programs, apprenticeship | Roof Maintenance | Roof Ventilation | Sales | Sales Strategy | STAR Awards | Suicide awareness in the workplace | Sustainable Roofing | Ventilation |
Premium Advertisers
Banner
Banner
Banner