- To keep your prices competitive ensure you do enough research. Some trade associations provide benchmark prices in the industry. Review these prices to evaluate their suitability to your business. Also, keep your
competitor's prices in mind while pricing your own.
- Start-ups are more likely to be successful if they focus on a highly specific, very narrow target market. General markets are usually dominated by large, well-established firms.
- Use flow charts to graphically depict how the customer receives the service or product.
- Once you have computed your annual advertising cost, compare it with that of your competitors. Advertising expense is one of the operating ratios (expenses as a percentage of sales) industry associations gather. If your
estimated advertising cost is out of sync with the average cost in your industry, you should revisit your assumptions and strategy.
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