Picking the right price to sell your product for is an important decision. But just like the Cheshire Cat couldn’t tell Alice which road to take without knowing where she wanted to go, you can’t pick the right price if you don’t know what you’re trying to accomplish by selling the product.

Ultimately, you’re trying to maximize profits. But there’s more than one path to that destination.

Terry Dean wrote:

Why is your business making this offer?

1. Is it to generate a maximum number of new customers?

2. Is it to earn the best return in serving your current customers?

3. Is it to create a long-term continuity income in your business?

4. Is it a one-time offer after an initial sale of another product?

5. Do you need it to break even or be profitable on a specific form of advertising?

Once you’ve answered that first question, you’re ready to think about price. As you’ll see if you read more of Terry’s article, it’s not a simple matter of lowering the price to sell more units, or raising it to sell less, but make more on each.