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The Numbers Behind Success: How Does Pricing Affect Your Gross Margin?

Pricing your product rightly is the key to success in the US market. Are you doing it right? Do you know the appropriate margins to be kept at each tier to ensure profits and a workable structure for all parties? Read on to know how to price your product correctly.

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In the beverage market, pricing can be one of the most complicated hurdles you face. Price your product too low and you won’t make enough margin. If it’s too high, however, you’ll price yourself right out of the market.

Pricing can be the magic lever that helps elevate your business, making it more profitable. In order to figure out your ideal price, you need to understand how it affects your gross margin (and vice versa).

3 Factors That Affect Price

Coming up with the correct price is paramount to your company’s success. Also crucial are factors that help build value in your company. Three of the most important factors that will drive your company forward and have a direct impact on your pricing are brand image, gross margin, and velocity. Let’s examine these in detail.

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