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YOGYAKARTA How to determine the selling price of products is an important thing that must be known when starting a business. The reason is, the selling price will affect various aspects, ranging from cash flow, profit, to costs that can be borne by business. In addition, the selling price of products also has an impact on consumers.

So, how do you determine the selling price of the product? Check out the following explanation.

How to Turn the Selling Price of Products

Selling prices are the final price of sellers or costs consumers must pay when buying products.

A business owner must be able to set the right price so that sales can bring profits. In addition, selling prices can also secure your business position in the market.

Compiled by VOI from various sources, Monday, October 10, 2022, the determination of product selling prices is influenced by several factors, including:

The following is an explanation of the three points above.

Cara menentukan harga produk bisa dilakukan berdasarkan coas-based pricing atau biaya yang sudah dikeluarkan untuk sebuah produk ditambah keuntungan yang diinginkan.

These costs include materials and other business operational funds, such as litis, employee salaries, transportation, promotional costs and so on. Thus, you must really understand how much production costs are spent.

Well, calculating the selling price of products based on coast-based pricing can be done by adding production costs with a percentage profit to be obtained.

For example, you want to sell X products. In the production process, you spend 150 thousand for 10 products, and 50 thousand for operational costs.

So, the cost of production of X products is 200 thousand. If you want a profit of 15 percent, then the calculation of the selling price of the product is:

Rp200,000 + (15% x Rp200,000) = Rp220,000 per 10 products.

So the selling price per product is IDR 200,000: 10 = IDR 23,000.

If the products you sell are obtained from suppliers, you just have to add a percentage of the profits at the cost of the purchase.

Selling product prices can also be done by looking at price competitions in the market. Product price information from competitors or competitors will make it easier for you when setting product selling prices.

You can sell product prices exceeding the market price if the products sold have more value.

The shortfall in this method is that you ignore production costs if they focus too much on the price set by competitors.

The determination of product prices can be done through customer perceptions of the products you sell.

Related to this, you can conduct customer surveys with interviews or provide questionnaires such as:

By conducting a survey, you can determine the price of the product according to consumer expectations.

Generally, the selling price of products is determined by the producer or seller. However, product prices based on value-based pricing are determined by customers. This means that the price of a product will be adjusted to the value that has been given by the customer.

The value of the customer can be known from a certain survey or research. Later, the seller will get the selling price of the product that has been estimated by the consumer.

This method is usually used to sell unique and quite rare collectible products. In addition, value-based pricing is also used to determine quality, exclusive and popular products.

That's the information about how to determine the selling price of the product. Hopefully it will be useful!


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