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For a successful business, you need a viable business idea, the skills to make it work and the funding. Discover whether your idea has what it takes.

Forming your business correctly is essential to ensure you are protected and you comply with the rules. Learn how to set up your business.

Advice on protecting your wellbeing, self-confidence and mental health from the pressures of starting and running a business.

Learn why business planning is an essential exercise if your business is to start and grow successfully, attract funding or target new markets.

It is likely you will need funding to start your business unless you have your own money. Discover some of the main sources of start up funding.

Businesses and individuals must account for and pay various taxes. Understand your tax obligations and how to file, account and pay any taxes you owe.

Businesses are required to comply with a wide range of business laws. We introduce the main rules and regulations you must comply with.

Marketing matters. It drives sales and helps promote your brand and products. Discover how to market your business and reach your target customers.

Some businesses need a high street location whilst others can be run from home. Understand the key factors from cost to location, size to security.

Your employees can your biggest asset. They can also be your biggest challenge. We explain how to recruitment and manage staff successfully.

It is likely your business could not function without some form of IT. Learn how to specify, buy, maintain and secure your business IT.

Few businesses manage the leap from start up to high-growth business. Learn what it takes to scale up and take your business to the next level.

How to set competitive prices

Regular sales are vital for your business so encouraging your customers to continue to buy from you should be top of your to-do list. How can you ensure your products and services remain keenly priced and relevant to your market?

1. Calculate your costs.

Before you consider raising or lowering prices, review the costs involved in producing your goods or services. Look at everything from manufacturing and marketing to insurance and salaries. Assess whether the prices you're charging will make decent margins - anything between 20 and 40 per cent above cost value is regarded as a good return.

 

2. Consider the competition.

Research your competitors regularly. Find out who's offering similar products and services and the prices charged. Check websites, talk to suppliers - even invest time in mystery shopper surveys. This enables you to assess whether your prices are right for the market and if your products are being merchandised effectively to maximise sales.

3. Make a loss.

Well, not exactly. A "loss leader" - a product not in itself profitable, but which draws customers - is a well-established competitive pricing tactic. Increased sales of pricier offerings effectively offset the loss.

4. Be unique.

Don't lose sight of what makes your offering special. There may be many different muesli brands out there, but if customers like your particular recipe, chances are they'll pay a little more to keep enjoying it.

5. Don't discount discounts.

It's a risky strategy but worth it if you want to generate a buzz by encouraging large orders - especially for products or services new to market. Don't throw in too many incentives though you'll only eat into your profit and risk betraying a lack of faith in the original proposition.

6. Location, location, location.

Vary prices in the different places where your products are available. You might, for example, be able to offer the same product more cheaply through your website than in a shop, as there are fewer overheads.

7. Target your market.

Consider adapting products to suit the needs of particular customer groups. This might involve offering economy, standard and premium versions. Such an approach (market segmentation) can build loyalty and see customers progress to higher price points as their circumstances and needs change.

8. How would you like to pay?

Sometimes, the method of payment is as critical as being competitively priced. Offering agreed time periods in which to settle a balance is one way to incentivise purchases, particularly on high-cost items. Allowing payments to be made online or by contactless, where relevant, are options your business should offer.

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