Criteria to determine price of sales:
- The prices of your competition.
- The demand of the product.
- The acquisitive capacity of the market.
- The payment facilities you offer.
- The time in which you wish to recover your investment costs.
- The type of competition you are facing.
- The characteristics of the product.
Determining the equilibrium point
The point of equilibrium is the minimum quantity of units that need to be sold to cover the production costs. Above this level, the company will obtain utilities, if it goes under, the company will lose.
Knowing the equilibrium point allows you to know the minimum amount of units that need to be produced, and lets you know the possibilities of varying the price, plan the sales and utilities, and calculate how much money you will need.
For example, lets consider a unitary price of $1.00 per liter of ice cream. First you will need to calculate the variable unitary costs.
Desserts Recipes Determining Pricing
