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Copyright Envision Corporation. 2002. All rights reserved.

Protected by the copyright laws of the United States & Canada and by international treaties. IT IS
ILLEGAL AND STRICTLY PROHIBITED TO DISTRIBUTE, PUBLISH, OFFER FOR SALE, LICENSE OR SUBLICENSE, GIVE OR DISCLOSE TO ANY OTHER
PARTY, THIS PRODUCT IN HARD COPY OR DIGITAL FORM. ALL OFFENDERS WILL BE SUED IN A COURT OF LAW.

PRICE SETTING WORKSHEET

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Things to Take in Consideration When Setting Price


You should consider setting prices above
your competitors prices if

Yes

No

Your market is not sensitive to price


changes.
Your market consists mainly of growing
commercial customers.
Your product is an integral part of an
established system.
Your reputation for status, service, and other
positive perceptions in the market increases
your products perceived value.
Your customers can easily build your price
into their selling price.
Your product is only a tiny percentage of
your customers total costs.

2
0
0
2
.

You should consider setting your prices just below your competition if

A
l
l

Your customers need to reorder parts or


supplies.

r
i
g
h
t
s
r
e
s
e

Your market is very sensitive to price


changes.

Your business is small enough that a lower


price will not threaten your larger competitors
and start a price war.
You have the option of economical
production runs which decrease your unit
cost.
You have not reached full production
capacity.
Estimating Demand

Copyright Envision Corporation. 2002. All rights reserved. Protected by the copyright laws of the United States & Canada and by international treaties. IT IS
ILLEGAL AND STRICTLY PROHIBITED TO DISTRIBUTE, PUBLISH, OFFER FOR SALE, LICENSE OR SUBLICENSE, GIVE OR DISCLOSE TO ANY OTHER
PARTY, THIS PRODUCT IN HARD COPY OR DIGITAL FORM. ALL OFFENDERS WILL BE SUED IN A COURT OF LAW.

1. Which products/services do customers shop around for?


2. Which products/services are in greater demand even at higher prices?
3. Are certain products/services in greater demand at one time of the year than another? If so, which?
And what is the duration of the demand?
4. Do your customers expect a certain price range?
5. What is the balance between price and quality in your market?
The Competition
1. What are your competitors pricing strategies?
2. Are your prices based on an average gross margin consistent with your competitions?
3. Is your policy to sell consistently at a higher price, lower price, or the same price as your
competitors? Why?
4. How do competitors respond to your prices?
Pricing and Market Share
1. What is your present market share?
2. What are your market share goals? To increase share? Maintain share?
3. What effect will price changes have on your market share?
4. Is your production capacity consistent with your market share goals?
Strategy
1. Have you determined how pricing affects your sales/volume goals?
2. How can pricing help you gain new business?
3. Have you tested the impact of price strategies on your markets?
4. Are your strategies in line with broader economic trends?
Policies
1. How does the nature of your products/services affect their price?
2. How does your method of distribution affect price?
3. Do your promotional policies affect prices?