Many new entrepreneurs in Nepal use a simple formula: cost + profit = price. While this works for survival, it doesn’t always work for growth or competition. A good pricing strategy also considers value, competition, psychology, and customer expectations.
“The right price is not just what covers your cost — it’s what your customer is happy to pay, repeatedly.”
1. Start with Cost, but Don’t End There
- Fixed Costs: Rent, salaries, utilities
- Variable Costs: Raw materials, packaging, delivery
- Hidden Costs: Damaged goods, discounts, returns
Start by calculating your total cost per product or service. This gives you the minimum you must charge to avoid losses.
2. Add Value-Based Thinking
Ask: What is the value of your product to the customer?
- Are you saving them time or effort?
- Are you offering freshness, local identity, or handmade quality?
- Are you giving peace of mind (e.g., hygiene, reliability, warranty)?
If the perceived value is higher than your cost, you can charge more—even if others are cheaper.
3. Study Your Competitors
- Visit local markets and online platforms to see how similar products are priced
- Don’t always undercut — instead, differentiate
- If your product is better or more convenient, price it accordingly
Pricing is not about being the cheapest — it’s about offering the best value for the price.
4. Use Tiered Pricing (If Possible)
- Budget Option: For price-sensitive customers
- Mid-Tier Option: For average buyers
- Premium Option: For quality-focused customers
This strategy allows you to serve different customer groups with different budgets.
5. Include External Factors
- VAT or Tax: If registered, add applicable VAT or service tax
- Transport Costs: Especially for inter-district or mountain areas
- Seasonal Demand: Raise prices slightly during festivals or high season
6. Review and Adjust Regularly
Your pricing should evolve as:
- Your costs change (fuel, raw material, labor)
- Your brand becomes more trusted
- Your customers show loyalty
Don’t keep the same price forever. Monitor performance monthly or quarterly.
“Good pricing is a mix of numbers, competition, and psychology — not just math.”
