Check out the video “How to Price Your Product or Service” on Inc.com for advice on formulating and manipulating your pricing structure to maximize profitability. Here are three aspects to consider, from Scott Gerber of the Young Entrepreneur Council.

1. What are your competitors charging? Consider all the different competitors in your market – high end, low end and middle ground. Where do you want to position your business in the market? Choose a structure that will get you the best penetration in your market, as fast as possible. Think about what your competitors are not utilizing in their pricing models and try to take advantage.
2. Front-end, back end and/or tiered pricing. “Figure out, in your business, how you can find ways to tier your pricing structure to maybe sell people early on the notion of a certain price, but then give them options that will ultimately increase your bottom line,” Gerber says.
3. Understand conversions and metrics. Know how much you’re actually making on a particular product or service, and use that knowledge to decide if your current price is maximizing profitability. “Make sure you measure and actually check what’s under the hood of your business rather than just guessing and thinking you’re doing well,” Gerber says.

Click here to watch the video on Inc.com, with additional advice from Princeton Review founder John Katzman.