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A classic mistake any business can make is setting its prices by determining what it "needs" and setting the fees accordingly. If you bypass the step of doing a market analysis, and determining what people are willing to pay, you may end up with a viable pricing structure but no customers.
A friend had a software product he was trying to sell, but got no customers since he used "I need" based pricing rather than "market pricing". A newer generation product that does the same thing was introduced by someone else later as freeware (with plans for premium options) and has been building up a large user base.
Similarly, was the location chosen based on demographic analysis (number of LTC holders in surrounding towns, traffic infrastructure to support customers from a bit further away than local, etc.), or was it because "the principals live near the location, plus we were able to get the lot here"?
I wish them the best, but it seems like a high risk venture from a financial perspective.
A friend had a software product he was trying to sell, but got no customers since he used "I need" based pricing rather than "market pricing". A newer generation product that does the same thing was introduced by someone else later as freeware (with plans for premium options) and has been building up a large user base.
Similarly, was the location chosen based on demographic analysis (number of LTC holders in surrounding towns, traffic infrastructure to support customers from a bit further away than local, etc.), or was it because "the principals live near the location, plus we were able to get the lot here"?
I wish them the best, but it seems like a high risk venture from a financial perspective.
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