Pricing your product or service can make or break you. You want to be the best deal out there, but you also want to make enough money to make selling worth your while.

First of all consider how much it costs you to sell your product. What are the fixed expenses and the variable (figure those on the high side to be safe) expenses? Fixed costs include your overhead such as rental, salaries, taxes, and any expense that you pay regularly and it doesn't change. Variable expenses are those that can change. Such as the pricing of materials to make your product and intangible costs such as sales commissions.

Check your competitors. Who is successful in your field? They are obviously doing something right. Check out their products and pricing. Do they offer free shipping or an extended warranty? Ascertain why people are choosing to spend their money with this competitor. Knowing the ropes before you jump in will make you an even stronger player in the game of ecommerce.

Determine how unique your company's product is. Can you charge more for a special feature? If you can, promote that quality heavily and also the quality of the item itself. This will enable you to get a slightly higher price for your own product.

If you are lucky enough to be in an industry with a trade association, many of them can give you statistics for free about your product and it's demand and pricing around the country or world. This will give you even more knowledge for pricing your product intelligently.

Don't undercharge your products. You'll soon be shutting your doors if you aren't making a profit, not to mention, it looks unprofessional for your product. If you're too cheap, many people do assume they get what they pay for and a price that is too good to be true on a product may lead people to believe you have inferior or knock off products. If in doubt, another trick is to price on the high side and have a sale periodically. Everyone loves to feel like they got a bargain and no one will consider that you have an inferior product because you're having a sale.

Now that you know the basics, price your products and sell, sell, sell!