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A Decision Matrix for Startup & SME Founders
By Andreano Ng, Independent Consultant - Strategic Business & Tech Collaborator.
Back in the day, one of my core responsibilities was costing and pricing—negotiating reasonable purchase prices with suppliers, and recommending selling prices to our Sales Department across retail, dealer, and bulk/project tender categories. It wasn’t just about crunching numbers—it was about understanding margins, market psychology, and the delicate balance between competitiveness and sustainability.
That experience shaped how I approach pricing today: not as a fixed formula, but as a strategic lever that founders can pull with confidence.
🧮 The Core Formula
At its simplest:
Selling Price = Cost Price + Profit Margin
But simplicity doesn’t mean rigidity. This formula is your starting point—not your ceiling.
🧭 The Pricing Decision Matrix
Here’s a modular guide to help founders choose the right pricing strategy based on product type, market dynamics, and business goals:
Each strategy has its own logic—but the real power lies in knowing when to switch gears.
🔍 Strategic Levers for Founders
To price with precision, consider:
Customer Segmentation: Who are you serving, and what do they value?
Market Positioning: Are you a disruptor, a premium brand, or a cost leader?
Operational Realities: What are your fixed and variable costs, and how do they scale?
Psychological Anchors: Round numbers, charm pricing (e.g., RM99 vs RM100), and perceived fairness matter.
🧠 My Advisory Note
“Pricing isn’t just math—it’s positioning, psychology, and profit. Whether you’re selling socks or SaaS, your price tells a story. Let’s make sure it’s one your customers want to buy into.”
🚀 Final Thought
For founders, pricing is one of the most powerful levers in your business toolkit. It’s not static—it evolves with your market, your product, and your confidence. Use this matrix as a compass, not a cage.
🤝 Let’s Make Business Solvable—Together
If you’re a startup or SME founder navigating pricing, operations, or digital transformation, I invite you to reach out. At My Little Sharing, we’re more than consultants—we’re your thinking partner, your problem-solver, your safe space. And sometimes, we’re just that gentle reminder that business can be tough, but sharing makes it solvable.
Let’s build clarity, confidence, and systems that grow with you.
Enjoyed my writing? Hire me for compelling ad copy and creative writing—contact me today!
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