How much it costs to produce your product is largely irrelevant

Think about it, the price of your product is more about what the market will tolerate than the cost of production

If there is a market for handbags that cost $500 it is irrelevant that it costs the same as a $30 handbag

This is the magic of marketing where value can be added solely by perception

Equally if consumers are used to spending $2 on a to go cup of coffee they largely won’t care if it your special process makes it taste the same but costs $10 to produce

In that instance you are likely to lose $8 per cup and be out of business pretty quickly

So when you are pricing your product do take account of the cost of production to stay in business but be more aware of what your market will tolerate and price accordingly

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