University of Maryland Extension

2. Price

Author: 
Ginger S. Myers, Extension Specialist, Marketing, University of Maryland Extension and Kim Rush Lynch, Extension Educator, University of Maryland Extension

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Whether you’re gearing up to sell at a farmers’ market, through your roadside stand, or by private contract, you cannot thrive in business today without a pricing strategy. The price you set for your product must fall between two points: what the customer is willing to pay and your breakeven point (the point at which you start losing money).

Remember this golden rule when setting prices: perception is everything. How customers view your product or service and what they are willing to pay for it is based upon perceptions. In the end, customers will tell you loud and clear through their purchasing behavior whether or not your prices are too high, too low, or right on the money.

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Next page: Where to begin

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