How to Choose the Right Price for Your Product

[Jasz]

Pricing is a critical aspect of the business products you offer. It's important to set prices that will help your company reach its goals, and it's important to make sure those prices are fair for everyone involved. The relationship between price and value is a complicated one—the price you charge for your product or service should reflect the amount of value you bring to your customers. If you're charging too much, then people may feel as though they aren't getting enough value from your product or service, which could lead them to seek out another brand or provider. On the other hand, if you're charging too little, then you won't be able to attract customers who would benefit from what you have to offer.

How do you decide the right price?
-The time it takes to create a product? This could be time spent developing it (e.g., writing code), creating it (e.g., manufacturing), shipping it (e.g., shipping), or testing it (e.g., testing), the cost of material used as well.

 

[btaliat]

You just don't fix the price for goods except the goods have corresponding value to the customers. If paradventure one makes the mistake of fixing price, it is either there is under demand of the goods, it means the goods doesn't worth the price, or there may be over demand of the goods, which means people always want to take the advantage of the fact that the goods is worth more than its fixed price.

Other factors which the sellers consider before fixing the price may include checking the price board. There is price control in every economy. The seller will be too careful not to sell much above the price control because that is what always represents market price.

Some may consider the cost of production. The price of transportation and other factors of production like labour may be also consider before fixing the price of a commodity.

Though in some socialist countries, government is responsible for the fixing of price. This is because there is always uniformity in the price of goods in socialist countries. There is free will in the capitalist market, into the contrary, the individual is always allowed to fix whatever price they may want to fix under the price control

 

[allison001]

It will definitely depends on the product you are selling , but normally it is always advisable for you to at least take 20% of your production capital as profit when you have created a product . Taking more than that might expose you to difficulties because your competitors will even be looking for ways to overtake you.

If the strategy above is not working , then you have to observe what other company with the same product as you are doing . You have to also check the price they are selling it. This will give you a clue of the price you can set for your own product. It is always advisable for you to set price a little bit lower than what the market are selling . This will increase your chance of getting more people to buy from you.
Advertisement also is very necessary for your business at a start.

 

[saoussen5765]

Half of the merchants aren't free to select the right price of product due to the concurrence between products of other companies means your margin of win is even low and doesn't cover even the essence for transportation to the final customer.

 

[Ithedicious]

Most of the time it depends on the type of business . what I have come to understand is that no matter the type of business you established there is also a particular company within your country that may be offering the same product or services you are doing . In situations like this you have to put them into consideration , the quality of the same products they are producing and also know the same price they are tagging on the same products you are producing too.

But in situations that these are not available then you have to consider the amount of money you will need to from the products you have produced when you put everything into consideration .

A lot of business organisation will always like to adds 30% to the cost of production as their profit and in most cases they can adds 20% depending on the competition. But you shouldn't be greedy.