One thing entrepreneurs must focus on is the price of their products or services. There are several different pricing strategies entrepreneurs can consider before deciding on a final price. Two of the strategies are cost-plus pricing and competitive pricing. These two strategies can prove to be successful for entrepreneurs. Cost-plus pricing, in my option, is the simplest. This strategy simply takes the cost of the product and adds too it the mark-up profit desired. The mark-up can be anywhere from 1%-100%, depending on the cost of the product. On the other hand, competitive pricing is looking at the price of the same or similar product offered by your competitor. The strategy of competitive pricing focuses on the price that will make you the most desirable among your competitors. As an entrepreneur, you must do your research and choose competitors in your footprint. Entrepreneurs are charged with choosing the strategy that will be the most profitable for their business. After all, we want the biggest bang for our buck.
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