As business author and blogger Nicholas Bate says “Setting a price is not a quick phone conversation before catching a plane to Boston. A price point is a subtle capturing of profit, customer psychology, market penetration and positioning. Give it its due.”
Printers say you can’t have speed, quality and low prices; you can have any two of those, but not all three. The same applies to many other businesses. Decide which two are the priorities for you when putting your offer together – offering all three is the road to ruin!
If you expect to spend someone else’s money when starting up an enterprise, the figures will need to convince them you have the potential to trade profitably. Solid research should help you present figures that will stand up to scrutiny (and save you a lot of time, money and stress in the long run!)