SFS Minute 709: Keystone Pricing

We are slowly working our way through all the aspects of starting a new business. I hope you can listen to these segments and feel motivated to crush the remote control under a rock—and go start a business. Many people have used these skills, tips, and techniques to become millionaires and to run businesses they can eventually pass on to the next generation. This week, we want to talk about pricing. How do you determine the price of your products? Our first method is Keystone pricing, where the merchandise price is doubled. For example, if an item goes into the store for fifty dollars, you'll pay one hundred (or $99) at retail price. Think of that the next time you buy a hammer—you're likely paying double what it cost the store.