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Know Your Costs BEFORE Marketing Product

Maybe this goes without saying, but before you market anything, you ought to know what the cost of the product is, compared to the price you anticipate selling it for.

Cost includes what the product costs you to produce and package. If your product doesn’t have at least a 3-to-1 ratio (the price is thrice the cost of goods), you probably don’t have enough margin.

Get this ratio by dividing the cost of your product into the price you’re selling it for.

 

 

Jim Ackerman is a nationally renowned speaker and author of the book, “How to Get More Customers Who Will Pay You More Money, More Often.”  He is President & CEO of Ascend Marketing and the Alliance Group. You can reach him at jimack@ascendmarketing.com

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