36. Competitor PricingBy Roger Bryan
In this section of the business plan you need to include details about the pricing of your products and the reason behind the same. This in turn will determine as to how you are going to price your product and other services. Needless to mention, the price of your products needs to be competitive and at the same time usher in good profit margin.
Calculating Costs – Include the details about the various costs which you are going to incur in the manufacturing of the product or service. Compare these costs with your competition and chart out the pricing for your products.
Benefits – Are there are any benefits that the consumer is going to get by purchasing your product? Do these benefits give you an edge over the competition? Mention details and facts about these and include details if you would like to charge extra for these benefits.
Comparison – This section should draw a comparison between the product pricing of your competitor and your product. Mention the salient features of each and justify your pricing of the product.
Make sure that your pricing strategy includes other types of costs of manufacturing like overheads, selling costs etc and ensure that it is competitive at the same time.