Page 64 - Customers Final
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DARRAN BERRY
During the launch of your product or service you will
need to know what price you are going to ask customers
to pay. In order to know this you need to look into the
following types of pricing.
Types of Pricing Approaches
Cost Based Approach
Product – take all the costs incurred to make the
product plus any overheads and mark it up to make a
profit.
Service – place together the cost of employing/hiring
each person and what they do in your business in order
to get your service to the customer.
This will help to find the total costs that are necessary to
deliver your service to the customer.
The costs of all their actions then needs to be divided by
the total cost of your service/s according to the actual
usage of the time spent.
For example, you’ve designed a product that has the
following costs:
45
