Final answer:
In setting prices for self-produced items, consider determining costs and adding a target margin, while also being aware of the market prices for similar items to ensure competitiveness without compromising quality.
Step-by-step explanation:
When setting prices for your own products in your stationery shop, a blend of strategies is often effective. Initially, you should indeed determine your costs and then add your target margin to find the price (Option a). This ensures you are covering your expenses and reaching your profit goals. Also, take into consideration what the market price is for similar items (Option c). Benchmarking against competitors' pricing can help you understand market expectations and demand. However, simply mimicking competitor prices without considering your own costs can lead to losses or suboptimal profits. Avoiding reducing costs indiscriminately is also prudent (Option d); it's important to reduce costs where possible without compromising the quality that your customers expect. In conclusion, setting prices involves understanding your cost structure, accounting for your desired profit, and assessing market conditions.