Summary The business owner must understand that a single price will never meet everyone s expectations. The owner should establish a price and stick with it. Many small business owners find themselves caught up in giving special discounts to large numbers of their customers. Once started this trend is difficult to control. Written price lists help the owner avoid non-planned discounting.
Good pricing involves understanding the direct and indirect costs of the business.
It generally involves a combination of the pricing methods mentioned. Good pricing means taking into account the impact of taxes. Pricing decisions are an important part of the busi-ness image. Having the right price for a product allows both the customer and the owner to feel good about the transaction. The customer is encouraged to return and the owner has the satisfaction of providing the chosen level of service at a price where he or she can profit.