Hello World,

The thought of price often comes to mind when it comes time to purchase an item. It seems like we’re always assessing an item’s value by it’s cost. You wouldn’t buy a Porsche for five thousand dollars because you wouldn’t believe it was real, or working. There MUST be a catch right? What if a Porsche only cost five thousand to make? and you were being offered a deal by the manufacturer? Why is it normally so much more expensive then? We as consumers assess price, and often find it difficult, and need to compare similar products, but we rarely think about the process of pricing an object. As an entrepreneur, I’ve often had to give my goods or services a price. This has proven to be one of the most difficult business decisions to make. I am currently starting up a designer apparel company. What should I charge for a t-shirt? If I charge 15 dollars I may get more sales… but are they good sales? Do I want my brand to be known as a 15 dollar shirt brand? I could make a shirt that looked like a Lacoste shirt for roughly one tenth of what they charge for them in stores. Lacoste has better, and cheaper, production means than me. So they probably charge even more than ten times what it costs to make the shirt. That being said, there are still people willing to buy, and Lacoste still makes money. There are so many factors that go into the pricing of an object that I can’t even scratch the surface with this post. From brand image to supply and demand economics, it’s a tough decision to make – to say the least.

Stay Smart Sauder,

David Polsky