How to Set Prices That Maximize Margins and Sales Volume

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Setting the price for your company's products and services can be quite a challenging task.

It is no wonder that, according to data from the Brazilian Institute of Geography and Statistics (IBGE), almost 60% of companies go bankrupt in their first five years due to the lack of good planning and, consequently, a good pricing strategy.

How can you set an ideal price that doesn't burden your company but also doesn't make customers complain about the number? How can you ensure a maximized vp hr email database margin and an increase in sales volume without putting the financial health of your business at risk?

The answers to these and other questions are in today's content.

Read on to find out more!

What is pricing?
The word price comes from English and means price.

So, in pricing , we have something like “pricing” – the idea of ​​ing, in English, can be compared to our gerund in Portuguese. In this way, pricing is nothing more than putting a price on something or someone.

In a more conceptual and formal way, it can also be said that this is the name given to the process of determining the price of a product or service, with the aim of maximizing profits or achieving certain objectives of a company, such as:

– Increase market share

– Position yourself in a specific segment

– Cover fixed and variable costs

– Maximize profit margins

– Increase sales volume

Read more: How to sell more: simplifying the sales process

The risks of pricing your products incorrectly
Although many business owners underestimate this moment in their business, competitive pricing that is consistent with the company's reality must be done and reviewed frequently, after all, the price of inputs changes, inflation increases, among other internal and external factors.

Setting the wrong price for a company's products and services poses numerous risks to the company, such as: