Pricing Strategy for Small Scale Industries

Abstract

Any small company's business pricing plan will establish the market standard for the product or
service, and it's a crucial factor including both the bottom line and competitive advantage. Perform
significant market research early on in the life of any small business and pay careful attention to
previous variations in competition and demands. When creating a business plan, it's common for
owners to make the error of matching their pricing approach to the market's lowest-price provider.
This strategy is based on a rudimentary understanding of direct competitors as well as the notion that
the only way to win company is to have the cheapest pricing. Because large firms have more options
for long-term profitability, small businesses must be more cautious when selecting their pricing than
their larger counterparts. Instead, a good small business pricing plan balances the need to maximize
profits from each transaction or customer with the requirement to maintain high customer
satisfaction.