Pricing your product
Settling on a price for each product you are selling isn’t a clean mathematical challenge. I’ll stall reach it was often only sell products at a loss for the opportunity to up sell profit products. However, you need to crunch the numbers to clear idea of how much you stand the game or loose from the sale of crunching numbers also hope you’re home much a customer may be willing to pay. Charge too much, and you lose a customer; charge to little and you don’t make a profit.
Checking out the competition
Online shoppers often find what they want and they search for the price best price. They don’t always buy from the retail offering the lowest price, but they do compare prices so you should too. To start your pricing Sulu thing, check out some of the following sources:
Similar websites: search for websites that sell similar products and take notes of their prices.
Comparison-shopping insurance CSE: CFCs I like search engine’s: but for products only. Some of these include cool product search and next tag.com when you arrive at ACS East search for products just selling to see a wide range of competitive price points.
The auction sites: some sometime browsing for your products to see how much the same or similar items are selling for at auction is at auctions.
Big sites like Amazon and Zippos: while you’re obviously a smaller business e-commerce Giants, check the sites to see the pricing going up against.
Taking customers and value into consideration
Competing on price alone against competitors who often so much less than you can be tough battle. When setting prices, consider additional factors, including the following:
Customer motivation, what motivates your target market to make a purchase? Are there more concerns about price or dealing with a reputable retailer? Are there purchasing a money’s no object status item? Are there willing to pay more to get better service after the sale?
Your value add:
customers purchase more than just a product; they persistent experience. Think about what value your business ads be on the product. Some examples include stellar customer service, free returns, that’s really some excellent merchandising, installation instructions, and other educational training resources. If you’re providing an extra something that of the stores aren’t, don’t be afraid to charge for it.
Pricing is admittedly more art than science reading task with even the most experience retailer, but with the information you feed hear you well prepared to avoid these two major pricing mistakes:
Over pricing: overpricing leaves to lost sales and trust. In the world of e-commerce, your competition sites are just a few clicks away, and all my chakras are definitely compare prices. Thus, resist any “would this be a fair price to me as a customer?” ”
On the pricing: while pricing your product lower than your competition maybe something, pricing wars lower profit margins for everyone, including you. Customers may even mistake you low-price point for a cheap product, and worse, the scalp.