What You Must Know about Proper Product Pricing
Proper Product Pricing!
Experienced entrepreneurs agree that pricing your products properly is one of the most
difficult things you can do, whether it’s your first time to sell or have been running a
business for years. If you’re not careful, you can easily overprice your items and
discourage would-be customers from buying them. You may also set prices that are too
low and cause you to lose money instead of earning revenues.
Fortunately, there are several steps you can take to set the right prices for your wares.
1: Checking what other merchants offer
Many shoppers compare prices between different merchants before buying something,
and you should do this, too. Before setting a price for your products, visit brick-and-mortar
shops as well as online stores like Amazon, eBay, and Craigslist to find similar items and
see how much they’re selling for. This way, you’ll have a clear idea of the general pricing
range and know the average price of products that are similar to yours.
Asking what your customers think
It’s always helpful to do a survey and ask your customers how much they’re willing to pay
for the product you’re selling. Doing these will let you know what your customers’ budget
ranges are and how much they can afford to pay. It will also give you an idea of whether
you need to lower or increase your prices and what you need to do to justify higher prices
(such as improving the quality of your products or offering one-of-a-kind models).
Considering your overhead costs
This is one of the most important things you need to do. By keeping your overheads in
mind, you can come up with product prices that will let you cover your operating expenses
while giving you small revenue. If you’re planning to sell your items on online
marketplaces, for example, figure out how much you’ll spend on delivery
and shipping fees. Decide if you’d let the buyer pay all of these charges or if you’d
shoulder half of these fees and let the buyer shoulder half.
Finding a balance between cost and quality
Take a close look at your products and be honest with yourself: do they really have
excellent quality? Are they unique and hard to find elsewhere? If the answer is “Yes”, you
can justify setting their prices a bit higher than normal. If the customers balk at the price,
point out that your products have exquisite craftsmanship and can’t be found just
anywhere else and that they’re worth every penny that buyers would spend on them.
These are just some of the steps you can take to set the right price for your products.
Once you’ve determined how much you’ll sell your item for, decide where and how you’ll sell
them. If you’re planning to sell new or pre-owned items through the web, for example,
you can check out online marketplaces like Zikl. With the help of these websites, you can
reach out to a large number of audiences and sell your products with ease.