Pricing basics

The first problem of understanding the best way to approach pricing ones product or service is solved by getting sound business advice, which is readily available in Western North Carolinas entrepreneurial environment (see sidebar).

There are many methods for pricing for service businesses, retail operations and manufacturers. Going into many of them would be too extensive for this article. However, the basic parameters are easily set. Costs determine our lowest price and must include overhead expenses, marketing costs, R & D, etc. Demand and competition determine our highest price.

Self-worth

Another reason for underpricing is that we often undervalue ourselves. Its only in the past decade or two that women have been business owners in the large numbers that currently exist. Most new business owners, whether male or female, do not have extensive prior experience in running a business. Women have the additional challenge of overcoming our internalized devaluation of ourselves, especially in the business world. We may feel unqualified or undereducated. Where men might have the tendency to understand and properly value (or sometimes overvalue) their product or service, this is usually not the case with women.

Related to this, we may also underprice so customers will think were reasonable and nice. In charging full worth for our products or service, we value not only ourselves but

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