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How To: Set Prices

Is the price right? 9 steps to pricing your product or service for maximum profits.

This story appears in the December 1998 issue of Business Start-Ups magazine.

One of the earliest--and trickiest--decisions for new owners is determining what to charge for their products or services. Some entrepreneurs use elaborate computations. Others just guess. But if you calculate or guess wrong, you'll soon be out of business.

" is an art, not a science," says Edith Quick, partner with her husband, Roy, in Quick Tax & Accounting Service in St. Louis. The art is in striking a balance between the money you need to stay in business and the customer's perception of what your product or service is worth.

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