How would a product be considered organic?

What factors should be considered when setting product prices?

• What factors should be considered when setting product prices? What factors should be considered when setting product prices?

• Answer:

  There are really three factors that I see: Manufacturing Cost: -The higher it costs to manufacture or buy the product, the higher the price should be when selling it. For example, if making a childrens' toy costs $10 per toy, you would want to sell it a little bit higher, say $12-$15. Try and get maybe 20-30% when selling the toy. The higher you sell it than the manufacturing cost, the more profit you gain. Supply: -Basically, the higher the supply, the lower the price. For example, say you started with 20 products in stock at $150. After customers buy about 15, you raise the price to about $175. Demand: -Demand usually goes hand and hand with supply. Usually, the higher the demand, the lower the supply. Let's say that customers are buying similar products at different rates. Product A is selling 175/day, and Product B is selling 200/day. Assuming the manufacturing costs are the same, Product B would sell for more money than Product A because more people are demanding it. You should know how much to fluctuate the price with these 3 factors from personal experience. When you master these factors, you will find better profits. Good luck ;-)