costs and perceived value by the customer; the variation in input prices; competition; and market expectations. “In the bakery sector, for example, fluctuations in the price of flour and other ingredients can directly impact profit margins,” she highlights.
To help entrepreneurs with pricing, the expert shares five tips based on her successful journey:
1. Analyze your costs in detail. “It is essential to consider all costs involved in production, from raw materials to operational expenses. Only with a clear view of these values is it possible to set a price that covers expenses and provides profit,” she begins.
2. Study the market and competition. “Understanding competitors’ positioning and market trends allows you to adjust your prices competitively without compromising quality or brand perception,” she lists.
3. Consider the customer’s perception of value. “The price should reflect the value the customer sees in the product. Investing in quality and differentiators justifies higher prices and builds loyalty among the target audience,” she says.
4. Use technology to your advantage. “Financial management tools and sales analysis are essential to understanding consumer behavior, predicting seasonal demands, and adjusting prices strategically. For example, using detailed reports to monitor the impact of price changes can help ensure decisions are based on concrete data,” she explains.
5. Review and adjust prices periodically. “The market is dynamic, and factors such as inflation, input costs, and changes in consumer behavior require constant revisions to pricing strategy. Staying updated is crucial for business sustainability,” she concludes.
In short, implementing a well-founded pricing strategy is the core of business success. “The main lesson is that pricing should not be based solely on competition or intuition, but rather on a careful analysis of costs, added value, and brand positioning. Testing different approaches and maintaining constant monitoring are essential practices to keep a business profitable and growing,” concludes Marcela Fernandes.
