This module addresses the process of deciding on the price per unit for your product(s). The module explores different ways to calculate price, margin and the sensitivity of the models to changes (such as renting or buying equipment).
Sections include
1. General Overview of Costing and Pricing
2. Costing and Pricing for Different Market Channels
3. Options for Costing and Pricing
Checklist
At the end of this module, you should have:
a strategy to calculate prices on each of your products
clear knowledge of your costs of production
completed forms to calculate your prices
some knowledge of the key sensitivities of your model to crop failure, price changes of inputs and raw ingredients, etc.
Learning goals/ outcomes
To explore and test different approaches to price-setting
To ensure that all the costs of production are considered in pricing strategies
To consider different scenarios to adjust cost and price within operations
Target group
This module applies to businesses that have completed their market research and are moving into the planning phase. The pricing process helps to narrow the options down to the best market channels for the business based on this research and analysis.
