Describe Your Pricing Strategies

State your pricing objective-the goal to be achieved through pricing. (Possible objectives might include a certain level of profit, a specific market share, or a certain sales volume.)

If you are a retailer or wholesaler, state your average markup on cost and markup on selling price.

If you are a service firm, state your labor and material costs per hour. Then give your price per hour.

If you are a manufacturer, identify your total direct costs and total fixed costs. State how many units you plan to produce each of the first three years.

If you are a wholesaler, state whether you will use average cost, first-in-first-out, or last-in-first-out.

For all businesses, describe the typical markup in this industry and how your prices compare.

Identify your pricing policies and general pricing guidelines.

For example, will you run seasonal sales? Will you try to match the competitors' prices? Will you use coupons? Will you give employees discounts on merchandise purchased?