Do I Really Need a Pricing Strategy? Yes!

There are four general approaches to pricing – none of which, by the way, provide the perfect answer to this issue. The four strategies to pricing include:

• Find the Competitor's Price and Match or Beat It
• Apply a Desired Gross Margin
• Charge All the Market Can Bear
• Invent the Better Mouse Trap and Hope Customers Beat a Path to Your Door

Of these, the most frequently used is applying a desired gross margin. To apply this technique it is important to understand what a gross margin is. Gross profit margin is the percentage of the selling price remaining …