If you're a business owner who wants to succeed on your business, you should remember to carefully create a plan on pricing your products. You must think carefully on what direction should your product be, on the high-end, more expensive ones or on the lower to middle end that targets the common consumers. There are many different ways in building a name for your product and one of this is by pricing your product. The bottom line is you are worth the price you ask for.

So if you are asking for higher price then it also follows that your product should have higher quality. That way your customers who paid more will be satisfied. Same thing goes if you're asking for lower price. However, don't make this as an excuse to make crappy products just because you are charging less. You still need to consider the quality of your product so that customers will continue to patronize your products.

Here are two strategies that you need to consider when pricing your products:

1. Skimming strategy- targets low number of customers but with a higher profit margin. This type of strategy aims on branding the product so that consumers will perceive that it has indeed have a higher value. Be carefully though when choosing this type of strategy, because you have to spend more on marketing, and packaging your products.

2. Mass strategy- targets high number of customers but in a low profit margin. With this type of strategy, you are selling your products to the common people or the "mass" people. However, this type of strategy have tight competition so it is very important that your products' prices should stay within the market you are targeting so you won't get left behind and at the same you will earn profits.

Skimming and Mass strategies can be be best explain in the prices of different ice cream brands. Häagen-Dazs  used the skimming strategy for their products. They've invested on marketing, branding and packaging their products. In return, they priced their products a little more higher compared to other ice cream brands.

When pricing your product you have to consider first its quality. Making a profit is good but giving your customers the best products while earning profit is better.