Pricing: Complete guide to calculate selling price

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Pricing: Complete guide to calculate selling price
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Pricing ou pricing is a set of techniques for set the selling price of products or services. Beyond the look financial, of payment of the costs of the company, it is necessary to observe aspects of strategy e marketing: differentiation, competition, seasonality and demand.

Índice:

Many entrepreneurs do not master these techniques or underestimate their value to the health of the company. I can guarantee that sales price formation of products and services is one of the most strategic activities of a company and should be treated as a top priority.

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To know this importance, we have created the complete guide below, with all the crucial factors for know how to price your products and services.

Introduction

It is a series of evaluative methods to define the price of a product or service. It must be made from the cost structure of the company, the competition and the user's perception of value. How to calculate the selling price is one of the most strategic challenges that exist in a company. Continue Reading ...

This is a management theme that unites two large and deep areas of a business. Although the strategy is something super broad, it is often through pricing that it will translate into reality. So in a nutshell the pricing strategy is the way you go about use your price and business model of collection, to put your strategy in motion. Continue Reading ...

Cost estimation is one of the steps in a price formation. In other words, it is the financial and mathematical part, but it is not appropriate to set its price based solely on its costs. Continue Reading ...

Types of pricing

Every manager knows, even intuitively, that for your business to thrive, it needs to bring something new to your market. In other words, that means she needs to be different and innovate to stand out and win the customer buying decision. Continue Reading ...

In some activities, especially in the retail trade, the products sold are the same among several competitors. It is therefore necessary that the formation of sales price be made in a very dynamic way, especially in view of what is being practiced by the competition and the general changes of the market. Continue Reading ...

Any and all process of selling price definition, you must have a costing. But it is not every business that almost entirely bases its pricing on its costs, this is much more common in industrial activities, since the products developed usually have little differential between competitors. Thus, the cost ends up being the decider of the purchase decision of the customers. Continue Reading ...

A art of pricing can also be analyzed from the economic point of view. That is, the best price is that maximum value where supply and demand equals perfectly. A simple case, you say you have 5 popsicles to sell and 10 children as customers. Each child is willing to pay a real extra than the previous child. Continue Reading ...

Seasonality is the variation in demand / supply of some product or service according to the time of year. It is a very special factor when it comes to business management and price formation of products and services as it brings new operational challenges as well as earning opportunities. Continue Reading ...

Step by step to calculate selling price of products and services

Making the first price estimate

Did you know that knowledge and correct application of accounting principles can improve the management of your company's numbers, enabling a more accurate analysis of financial health and subsidizing decision-making? Know in this article the concepts of direct and indirect costs and know how to classify them properly. Continue Reading ...

O apportionment of costs is a method for separate costs, either in the pricing or in the management of the company, according to the elements that participated in it. This usually involves production processes, cost centers, and projects, but it is not limited to these spheres alone. Continue Reading ...

O markup, or mark up, is an economic index applied on the production cost e distribution of a product or service to set the selling price. The markup is calculated on the basis of fixed unit costs, variable costs and expected profit margin. Continue Reading ...

Analyzing the competition

Our potential customers are making buying decisions or not buying every day. In order to sell more and also to develop more attractive offers, it is necessary to understand what is going on in their minds, especially as regards the competing options they are seeing. Therefore, get this mental map both of the competitors (direct) and of the substitutes (indirect) will give us valuable data. Continue Reading ...

Value curve is a graph created by the authors W. Chan Kim e Renee Mauborgne in the book The Blue Ocean Strategy. According to the authors, nowadays most of the companies red oceans - very competitive and bloody markets with thousands of companies killing each other for minimal differentiations, suffocating themselves by trying to offer commodities with increasingly lower prices. Continue Reading ...

Choosing and validating the pricing strategy

The price you put into your business says a lot about your business. Mentally, the customer will already assume a lot about your business, the quality of your product and how your service works compared to its history of similar products. In addition, the price will also affect the other settings of your marketing mix. Continue Reading ...

O the pricing process is something essential in the company and has several financial facets and strategies. It is not enough just to raise costs, but also to make break even analysis, review business models and also map competitors' movements. Continue Reading ...

A contribution margin is the price share of a product after deducting the direct costs as raw material. That's how much to spare to pay fixed costs and generate profit for the business. From it, one discovers the amount of sales necessary to reach the breakeven. Continue Reading ...

O balance point calculation is one of the most important methods for good financial control of any business. With it you can understand the amount of sales that need to be made so that the revenue equals the costs and expenses, resulting in zero profit. Continue Reading ...

No one has any doubt that the price of a product or service is crucial to good sales volume at the end of the month, but currently few businesses understand that setting a solid pricing strategy can be the difference between making many sales, having constant high price complaints or even distrust for applying a very low price. Continue Reading ...

Industry-Specific Pricing

Price formation for products is the process of setting the sales value of your products. In industries as well as in retail, this process must be done continuously, because there is a great influence of the costs in the price and, typically, great variations. Continue Reading ...

Pricing is the art of pricing products so that they correspond to customers 'perceptions of value, are aligned with competitors' prices, pay the direct costs of producing the product, and allow the firm to break even, or you can get a combination of margin and volume that pays overhead, usually fixed, and leaves it zero-to-zero. Continue Reading ...

Pricing is the process of defining the sales value of your services. Usually the calculation of the sale price, is made at the opening of the business, but must be continuously revised for its optimization. Continue Reading ...

Consulting is the provision of a counseling service, performed by a professional who specializes in a particular topic or subject, with the goal of improving the performance of a specific individual, company or area within an organization. One of the great challenges for consultants is to understand how to make the pricing of a consulting project in the best possible way. Continue Reading ...

Pricing or forming the price of your monthly payment is the process of setting the monthly fee charged to the customer. This is the type of activity essential for companies that involve courses, schools, training, classes and other activities of this kind. Continue Reading ...

A major challenge for Brazilian companies is calculate freight costs. Our logistic inefficiency is known, not at the management level, but mainly on the means of transportation available and the explicit and implicit costs of any delivery operation. Continue Reading ...

For any entrepreneur or manager who works in a restaurant, cafeteria, hamburger or any other type of gastronomic establishment, one of the great difficulties is to be able to set the selling prices of your dishes correctly and without losing sight costs. Continue Reading ...

Spreadsheets in excel that will help you to price

Calculate the costs of your services, set your markup and see a suggested sales price, know your contribution margin and break even. S

Survey of fixed costs, production costs, taxes, raw materials and more. This is the complete spreadsheet for pricing products. S

This worksheet contains all the structure necessary for those who work with product resellers. You will be able to control your purchases and also see the margin of each product sold! S

price formation sheet for resale - pricing

Make the formation of the sale price for your course! S

Use the course pricing worksheet to find out all the costs with the courses you offer and know the ideal price to charge per participant. S

Ideal for those who sell projects, this worksheet has all the best pricing practices, allowing you to separate costs per step and also a detailed time allocation! S

Record all costs related to the production of your event and reach the contribution margin, ideal sales price and break-even point. S

Record the available rooms and the total number of possible periods to understand the ideal price that should be used at your motel. S

A worksheet that allows you to study the prices charged by your hotel and evaluate if they are feasible with the desired occupancy rate. S

Register ingredients and dishes to get an accurate view of your restaurant's profitability! S

The break-even calculation is also known as a price x volume study. It is essential to define market positioning and consequently pricing of services / products. With our spreadsheet, this study is easy and enjoyable allowing you to quickly view different scenarios and assumptions! S

Explanation video on Sales Price Calculation

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