Where do I start with developing a pricing strategy?

Question

Where do I start with developing a pricing strategy?

Answer 1

Simple really = if memory servers :

cost price you buy item for £ and divide it by 0.6 which gives you your retail price which you sell at.

that is the mark up for profit most companys use selling stuff..

Answer 2

Price is the dollar amount your customers pay for your product or service. Pricing is more than a number: it is the process of monetizing your social enterprise’s value in the marketplace. Pricing helps define your social enterprise’s profitability, which has implications for the rest of your organization. At its core, good pricing strategy will reflect your enterprise’s overall marketing and business strategy.

Since price directly affects revenues (price x quantity sold = revenue) and, therefore, profitability (total revenue - total costs = profit), a good place to start when developing your pricing strategy is by determining your unit costs. But don’t stop there – pricing strategy should reflect the value of your product of service to your customers.  For instance, are your customers coming to you for a commodity-like item that competes on price (e.g. a bran muffin)?  Or, is providing a subsidized service a primary value of your offering (e.g. below market rate rent in a nonprofit multi-tenant center)?  Or, are customers coming to you for a high quality, premium product (e.g. hand embroidered textiles from women-owned microenterprises in India)?