Developing a pricing strategy for your product involves more than charging what you think the product is worth, or the highest price that a reasonable customer would be willing to pay.

Some guidelines for setting prices include:

• What it costs to make or provide a product/service.
  
  
• A set return on investment (ROI), or a certain profit margin that must be maintained In the retail fashion industry, it is common to mark up products 50% of the manufacturing costs to the wholesaler, who in turn marks it up 50% again to the retailer.
  
  
• Pricing according to general industry prices, especially if the product is similar to others on the market.