Once you have identified consumers, located a retail outlet and completed test marketing, you need to determine the selling price for your product. Price is the primary means of generating income and profits for your business.
There are three major factors to consider in setting your price. The price must cover the cost of producing and marketing your product. It must be at a price that the buyer is willing to pay for the product. And the price offered by competitors will influence the price you pick. Setting your Price will help you through the process of setting a price for your product.
Food Retailers' Pricing and Market Strategies, with Implications for Producers research paper examines grocery retailers' ability to influence prices charged to consumers and paid to suppliers. They discuss the impacts of aspects of retailer behavior on the upstream farm sector.
For more information on pricing, see the box at the right.