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Today’s FedEx top tip: Cost out your product or service

The amount you charge for your product or service can have a direct effect on the profitability of your business. However, determining the right price can be an art rather than a science so your product or service has a high enough margin to be profitable, but isn’t too expensive so that demand tails off. When calculating your price point ensure overheads are met, for example manufacturing costs, employee wages, utilities bills and shipping. The price will also need to take into account any markdowns, product shortages and damages, so your business doesn’t suffer in the future.

Once you’ve determined the price of your product you shouldn’t forget about it. This is because market conditions often evolve, which can affect your costs as well as your company’s future prosperity. As such, monitor your production costs, inflation and competitors and update your prices accordingly.

To help give your business a boost, enter the FedEx Small Business Grant Contest. For more information, click here uk.grant.fedex.com/.

This was posted in Bdaily's Members' News section by FedEx .