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What's the Magic Price?

How to set a price for your product or service that'll leave both you and your customers happy

This story appears in the August 2003 issue of Teen Startups.

(YoungBiz) - Sarah Zelechoski, 21, got a rude introduction to business when she and her brother Luke first opened Saruke, a Web design company in San Diego, and went on one of their first sales calls. After giving a price quote to a local real estate firm over the phone, Sarah and Luke arranged a meeting to finalize the deal.

When the Zelechoskis got there, however, the agent told them another company had offered to do the job for much less, so they lowered their price drastically. The job ended up being much more involved than they originally thought, and Saruke made almost nothing on the deal.

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