As a guerrilla, you know that setting prices for products and services is one of your most important and challenging responsibilities. In order to prosper you must find the middle ground between the price your target market is willing to pay and one that produces a profit for your company. When establishing pricing, you must consider your costs, the effects of competition, as well as the customer's perception of value.

Let's define cost as the sum total of the fixed and variable expenses to manufacture or offer your product or service Every business has both fixed and variable expenses. Fixed costs include rent, utilities, office equipment, insurance, executive salaries, depreciation, and property taxes. Variable costs are expenses that vary with the amount of goods produced or service provided. They include the cost of raw materials, hourly wages paid to laborers and contractors, warehouse and shipping costs, and sales commissions. Variable costs can also comprise...

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