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Name Your Price

How to set the right price for your product or service

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This story appears in the July 2000 issue of Business Start-Ups magazine.

Face it. As an entrepreneur, you have to put a price on your services, products and time. If you're reaching for a feel-good figure in the dark without doing your homework, chances are, you're lowballing yourself-cheating yourself out of profits that could easily be yours. If you come in too high, you may be pricing yourself out of the market. Smart pricing is the key to business success, but how to find out what's right? Read on to learn how to set a price in today's market.

Who better to ask for the prevailing rates than your more-established competitors? Masquerade as a potential customer, or play it straight with the competition and tell them you're trying to get a handle on pricing. Our advice: always try honesty first. Competitors don't want rogue pricing to upset the marketplace and often will gladly share their rates.

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