Startup Funding Espresso -- The Role of Margins in Your Startup
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In launching your product you have a choice to either set a high price that gives you a high margin, or a low price yielding a low margin for sales. The high price is harder to sell but you don\u2019t have to sell as many units to make the business profitable. The low price is easier to sell but you have to sell more of them. Choosing your margin is choosing what part of the business you want to work on. The high price requires you to focus on sales and marketing. You\u2019ll need to hire more people and pay more in commissions. The low price requires you to focus on providing the product at a low cost. You\u2019ll need to invest in reducing your operating costs and keeping expenses low to make it work. Neither option is free and both are valid approaches to the business. If you end up with low margins and low volume you will be out of business. Think carefully about what your team can do and where they work best in making the pricing decisions. Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.Let\u2019s go startup something today. ___________________________________ For more episodes from Investor Connect, please visit the site at: \xa0 Check out our other podcasts here: \xa0 For Investors check out: For Startups check out: \xa0 For eGuides check out: \xa0 For upcoming Events, check out \xa0 For Feedback please contact info@tencapital.group\xa0\xa0 Music courtesy of .