This post answers the question or is same topic as business, product valuation
The methods are:
1. Competitive
2. BE pricing
3. Time
4. Cost plus,
5. Package or bundling
6. Value pricing
Which do you use?
1. Competitive. Your tool here is competitive or customer research. Find out how your competitiors price their products. Based on your positioning, you can price your product equal to lower or higher than the competitor.
2. BE prcing. Compute for your total cost: Varicable cost and Fixed cost. At what price do you neighter lose or make money
3. Time. PHP/hour. Often employed by lawyers, consultants, coaches accountants
PHP/hour php/day. But there is conflict of interest or disincentive for efficiency. Normally the seller would use the higher more expensive charge. Not the lesser more efficient. The solutiontn for this is value pricing
4. Cost plus
Total materials, labor inputs and add% as profit for the seller
Again there is COI here. The seller tends to input more expensive materials or labor to get higher
share fee for himself. Take example in nearby project. The architect dug 6 storey foundation for
3 storey building. It took longer and spent more time before they were able to rise above the
foundation The architect, friend of the owner, got more hefty fees. To avoid
5. Package bundling
What is the value of each of the component project. Then add. That is your price. You may or
may not give a discount
6. Value pricing
This is total project cost; labor and materials
+ x amount if you finish this on time
+ y amount if below budget
Is this of help.? Text +63 908 928 7888 if you need more materials, coaching or seminar or dm
jorgeus george. Or Gmail. profjorge.entrep@gmail.com
