healthy margins – Parfrey Murphy http://parfreymurphy.ie Business Growth Specialists <br>and Tax Consultants</br> Wed, 25 Oct 2017 11:42:33 +0000 en-US hourly 1 43380109 How Low Should You Go – Healthy Margins http://parfreymurphy.ie/how-low-should-you-go-healthy-margins/ http://parfreymurphy.ie/how-low-should-you-go-healthy-margins/#respond Tue, 22 Jan 2013 12:24:28 +0000 http://parfreymurphy.ie/?p=3081 Maintaining a healthy margin is essential in order for a company to survive and continue to grow. Appropriate pricing and monitoring costs are key components to establishing and maintaining a strong margin. Here are some key points on determining how low you should go with pricing your product/service.   Points to remember to maintain healthy margins:   Have the most up to date information regarding costs – this is the basis for determining your selling price. Ensure volume does not decline as this will increase the overall overhead cost per unit and so decrease the margin […]

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]]> Maintaining a healthy margin is essential in order for a company to survive and continue to grow. Appropriate pricing and monitoring costs are key components to establishing and maintaining a strong margin.

Here are some key points on determining how low you should go with pricing your product/service.

 

Points to remember to maintain healthy margins:

 

  • Have the most up to date information regarding costs – this is the basis for determining your selling price.
  • Ensure volume does not decline as this will increase the overall overhead cost per unit and so decrease the margin
  • Have an in depth knowledge of the market the products/services are being sold to, to try and maximise the products/services price
  • Differentiate your product/service when compared to competitors – this will allow you to ensure that the maximum price can be placed on the product/service as the customer will not be able to find it anywhere else
  • With increased advertising now on the world wide web, competitors’ prices are now readily available – monitor this regularly to ensure that you are not losing customers due to excessive margin demands
  • Let customers know the high quality of the product/service to ensure that they know the price is justified

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