If you have a new product or service that is unique to the field, there’s always a temptation to price it at the top of the field.

We understand this approach, because you want to maximize profits, but we don’t necessarily recommend it.

Look at your overall service package: are you first, middle or lagging?

If your service on your website is sort of non existent, or it’s not easy to use, you might have to lower your price.

One of your nasty competitors might just decide to undercut you on price, which always seems to be where people focus, rightly or wrongly.

If you limit your customers, to create exclusivity that’s also a factor.

As we’ve said before, your overall growth is related to how well you do on the overall promotion scale, e.g., about 5% per item done well. So, if you do all five promotional tools well, you should project about 25% growth per year.

I’ve also been in a position where, if you price on cost, your starting price might be lower than what the market will pay. And you might be capacity limited. So you might have to raise prices.

Bottom line: price it where you think it should go and see what the market does. Adjustments are the staff of life.