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One of the frequently asked questions every entrepreneur is: What is the best way to price my product? There are many systems but usually work with three.

The first is the cost method, which makes the entrepreneur is to calculate all the costs it has had to buy your product, then applies a wide enough margin to meet your expectations, this is simple but has its problems.

The most important not to consider the characteristics of your customers, not taking into account market conditions or competition and you can place in a rather dangerous situation, you can set a price that does not match reality and will not invite your market to consume your product.

The second method is the formula in pricing competition, how does the formula of the competition?. It works by fixing the products according to price competition that fix it, if you put it well above these reduced sales opportunities for the chemical and if you put it on low you can start a price war that will not benefit quite no.

This system can be valid but has a limitation from the point of view is that eventually the price level will always be controlled by the price level set by the competition, is restrictive in that regard.

A third way to set your prices from my point of view is the most important, you should use the formula is slightly more complex but can sacer a better match to your products.

This formula is to set the price depending on the value perceived by your customers. What does this mean? No longer set the price based on cost, and competition but fixed it by the value you deliver to your customers with your product or service.

If you are able to evaluate and translate that value into money and price then do it in this way using this system that will allow you to maximize revenue in your company.