24 Nov What’s the best way to set price levels?
First, let us recommend that you consult an expert on this, as setting price levels can be a complicated process. However, just as a basic idea, prices are based on a few major considerations.
The first thing you need to consider is your direct costs (actual material costs), labor, and overhead (facilities, utilities, taxes, insurance, security, and general operating costs). When you add all of these things up, you have the break-even cost.
From that point, you have to determine what you’d like your profit to be. Again, that is a very complicated decision, and we suggest talking to a financial adviser before settling on something.