How To: Set Prices Is the price right? 9 steps to pricing your product or service for maximum profits.

One of the earliest--and trickiest--decisions for new businessowners is determining what to charge for their products orservices. Some entrepreneurs use elaborate computations. Othersjust guess. But if you calculate or guess wrong, you'll soon beout of business.

"Setting prices is an art, not a science," says EdithQuick, partner with her husband, Roy, in Quick Tax & AccountingService in St. Louis. The art is in striking a balance between themoney you need to stay in business and the customer'sperception of what your product or service is worth.

Here are nine methods commonly used when setting or rethinkingyour prices. (Yes, rethinking. You should evaluate and adjust yourprices at least once a year to accommodate changes in competition,the economy, consumer tastes and your company's needs.)