- Do know your costs (including overhead) and properly account for both direct and indirect costs.
- Do enlist “price trackers” in your company to track competitors’ pricing strategies. Gather updated price information for each competitor.
- Do understand the position that you want your pricing to communicate and stick with that vision.
- Do base your pricing on value. This can be challenging to determine and takes more work, but it will pay off in the long run.
- Don’t let your competitors be the end-all determiners of your pricing strategies.
- Don’t rely solely on your costs of delivering a product or service to come up with your rates. This could result in under or overpricing.
- Don’t use the “out-of-the-air” or “gut feeling” approaches to pricing. Neither are good long-term business processes.