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Prices are not determined by cost of production, but by what the market is willing to pay. Figure out what the market is willing to pay and then decide if you
by beloch 5y ago
Prices are not determined by cost of production, but by what the market is willing to pay.
Figure out what the market is willing to pay and then decide if you can get your production costs far enough below that to justify the enterprise. Yes, being handmade by locals adds to what people will pay, but only so much.
- jay_kyburz 5y agoI agree, I came to the comment section to say I think this article takes the wrong approach entirely. You have to test your market with different products and different price points. If you make three widgets, offer them for $1x, $5x, and $10x. If you sell all three you know you are still too cheap. Make your next batch even more expensive until you find a price that people are not willing to pay. If your products don't sell, you need to either lower all your prices, or improve your marketing.