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The Price Is Right? Many entrepreneurs are consumed with putting price tags on their products or services. But at what cost to their businesses?

By Bill Kelley

Opinions expressed by Entrepreneur contributors are their own.

Whenever a prospective client asks Curt Nelson for the cost ofhis product, he always replies with the same answer: "I'mnot sure." Exactly why does he do this? Nelson says hehonestly doesn't know the cost until he talks to the customer,and, equally important, he doesn't want to get into a pricewar.

"Price isn't [the only thing] that drives a customer,even though everyone thinks it is," contends Nelson, 47,president of Crystal Group Inc., a Hiawatha, Iowa, computermanufacturer. "The real issue is always value. Think of itthis way: Would you eat the cheapest hamburger simply because itcost next to nothing, regardless of how it tastes?"

Despite this argument, many entrepreneurs and their salespeoplecontinue to focus on price alone. In some industries, price tagsdrive deals because customers often use them as their primarymeasuring stick. Unfortunately, salespeople go along with thesecustomers all too often. That doesn't mean you have to succumbto a price war, however. In fact, the most successful entrepreneursrarely do.

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