CONNECTING to THE GLOBAL PRICE

I don't know why but always when I try to create a new business or thinking the details of the new product, first thought I have about my product is the PRICE. And unfortunately for my business I'm not thinking about HOW I could INCREASE the price of the product that I'm creating -- instead I'm thinking on how to DECREASE the PRICE to meet the needs of people who gonna buy it.

Sometimes I set such low prices which even puts at a doubt the existence of the business itself. Money is the FUEL which business requires, and when there's too small amount of such FUEL, the problems arise.

I can confess that for a long time I thought that DUMPING (definition: kicking off the competition by low prices) is the best and closest way to success since I had many examples in head of the small businesses which win customers by providing lowest possible prices.

When I was thinking that starting the business with lowest possible prices could increase the chance of my business surviving, I was wrong. And I will explain why:
* First off. The business model is a mathematical model, survival of which depends from many mathematical factors, and it is not only math about money flow inside the business. It is also about the marketing numbers: such as customers, interest indicators (in the web there's an advertising term: "ctr" which shows how many people clicks on your banner), quality of potential customers, quantity of leads, etc.
* And since the business is a mathematical model, there's such a thing as RETURN-ON-INVESTMENT (ROI). I explain: QUANTITY of your QUALITATIVE efforts and other assets you create inside your business is AN INVESTMENT on which you have to get a RETURN. If CUSTOMER pays you smaller than it pays to your competitors, then you get not enough RETURN on INVESTMENT. You steal the customers off your competition, but if they aren't providing the living to your business, then your business are on the edge of not meeting the goal for enough money for the essential business maintenance needs.
* Now you are probably asking what's the best idea about the price to set for your business? Answer is EASY: the best universal way to the right prices is CONNECTING to THE GLOBAL PRICE. See: nobody tries to purchase high price house to sell it for a LOWER price. If you realty has the price - business & every of your customer DEFINITELY will has such a price TOO.