Fungible Products & Pricing

Fungible products sell cheap. (Fungible products have little difference from competitors, e.g. two brands of nails or of flour). To escape this classification (which buyers are applying to more and more products), consider bundling your product with another. Examples: A tea pot with an assortment of teas, a book with a short video course forContinue reading “Fungible Products & Pricing”

Cost-Plus Pricing Strategy – 2 Good Uses

Cost-plus pricing (adding a fixed percentage for profit on top of your costs) is the worst pricing strategy around. And it’s used by most companies(!) But… there are two good uses for it: Use it when all your products or services are completely customized. Thus if you build new houses to customer specs — thenContinue reading “Cost-Plus Pricing Strategy – 2 Good Uses”

Do you use this terrible pricing strategy?

Cost-plus pricing is where you calculate your costs, then add a percentage to it for profits. It is used by most companies. Cost-plus pricing is required only where you sell customized products/services — where every order is different. For all other products/services — it’s the worst pricing strategy you can use. In fact — youContinue reading “Do you use this terrible pricing strategy?”