How to Price Your Products

[Jasmine]

Pricing is very important factor that determines the sale. With proper pricing structure, you can drive sales, but how do you determine what is the appropriate price.

One of the major issues regarding pricing is how to sell more and earn higher profits when your competitors are selling the same product for a low price. In other words how to sell your product for $25 when a lot of people are selling for $12.

Your pricing should always be in line with the pricing structure with your competitors. However, you need to understand one simple truth about consumer behavior, people do not always buy cheaper products, they are also buying better product and they don’t mind paying additional amount for a better product. Therefore, you can still sell your product for higher price if your product has better design and better quality. If you are selling online, how can your customers actually find out if your product is good quality? Well, here lies the importance of getting positive reviews.

 

[btaliat]

Pricing is a technique that must be learnt by a business seller. This is because the how moderate your price is will determine the more customers that will surely buy goods from you. That's why a business seller always take his or her time before fixing a particular price for his goods to prevent losing customers or running into debt.

A business seller must know very much the behavior of his or her customers. She must know how they quickly respond to price changes. The may be easily known through identification of the types of goods and products that we sell.

Those that sell ostentatious goods and products and those that sell things that are of necessity may not be bothered by the fixing of price because people will still get those goods and products no matter the price they may fix them. But for someone that sells goods that can do without or those that have more competitors need to be careful and fix price having considered some factors.

The factors to be considered may include knowing the market price. He needs to also consider the cost of production not to charge much. This will prevent him from running into loss.

 

[King bell]

The price you set for your products will depend on a variety of factors, this include; The cost of your production, the perceived value of your product, your marketing strategy and your target market. When pricing your product there are general principle you can follow-up. Firstly, you have to make sure your prices covers the cost of production. You need to be able to cover the cost of materials, labour, and shipping. If the prices are low, you will be operating at a loss. Secondly you have to consider the perceived value of your product. you can charge higher prices when you have high quality product. But even if your product is not the best on the market you can still charge a fair price if you have a strong marketing strategy. Finally, you have to think about your target marketing. Think about who youre trying to sell to. If you are selling to budget-conscious consumers, you might want to set a low prices, but if you are selling to a luxury market, you can charge higher prices. Finally the best way to set prices for your product is to try out different price points and see what works best for you.

 

[Mika]

I don't want to make a $20 profit from a single product, I would rather sell 10 products and make a $20 profit. I always focus on volume sales instead of limited sales. That's why I set a low mark-up on my products, it is always 10 percent, however sometimes I add a 12 percent margin, but my margin never crosses 15 percent. MY pricing strategy is based on one simple logic, if I provide a better design for a lower price, I will have higher selling chances compared to my competitors. Some people do not care about how much the product is priced they care only about the product, but in my opinion, a lot of people care about how much they will be paying for the product. When I sell a print-on-demand t-shirt I normally make a $3 profit. It takes just one hour to design the T-shirt, why should I ask for more.