Investor Connect Podcast

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

In launching your product you have a choice to either set a high price that gives you a high margin, or a low price yielding a low margin for sales.

The high price is harder to sell but you don’t have to sell as many units to make the business profitable.

The low price is easier to sell but you have to sell more of them.

Choosing your margin is choosing what part of the business you want to work on.

The high price requires you to focus on sales and marketing.

You’ll need to hire more people and pay more in commissions.

The low price requires you to focus on providing the product at a low cost.

You’ll need to invest in reducing your operating costs and keeping expenses low to make it work.

Neither option is free and both are valid approaches to the business.

If you end up with low margins and low volume you will be out of business.

Think carefully about what your team can do and where they work best in making the pricing decisions.


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
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Direct download: The_Role_of_Margins_in_Your_Startup.mp3
Category:general -- posted at: 6:00am CST