Setting the Right Price for Products

In the real estate sector a most ignored part is the charges for the services you provide. The following tips are given by the marketing experts -

a) Know The Rival’s Charges – One can make a fake phone call and ask the competitors regarding the rates they charge for the services offered by you. Hence, a comparison structure can be derived at. If the sector you are operating is where customers do not care about prices much then, an average of what your rival’s charge is a good option. However, if price is a big issue then one has to play intelligently.

One must not always wish to charge the cheapest rate always. However, the marketing experts state that one can also find that he can enter into a particular sector and take away customers from the competitors even after charging a higher price. This is because people believe price means quality.

b) Add The Cost, Time And Margin –One must calculate the cost of materials utilised for the work like your service charge, electricity bills, lawyer’s fees, promotional costs and many more. The cost of each product you offer must be calculated and the final price should be a bit higher than the actual costs involved. However it should not be too high.

The next step is to calculate how many hours is spend by you to provide the product or service. Find out an hourly rate for your work and see whether it is satisfactory. It’s your decision to set the rate but to begin at a minimum rate is good.

One must also find out the summation of the cost and time and add margin with it. Marketing experts and researchers recommend that the margin must be generally 30 to 50 % of the price you have already calculated. This money is required for investments or expansions of business, payment of taxes, bad debt reserve etc.
Find out how to enhance and settle the optimum price for the products and services you offer at http://www.blue-sky-ltd.com.