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Name Your Price How to set the right price for your product or service

By Robert J. McGarvey

Opinions expressed by Entrepreneur contributors are their own.

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

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

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