Setting a price for any product is difficult if you do not know what it could sell for. This is one of the most harrowing decisions a business owner needs to take, and many wrack their brains over this every so often. It is not a formula to be calculated, but an art, of balancing acts. Psychology and marketing go hand in hand in this art form. Remember, you have to review it periodically: The same price will not work forever.
One of the main things to remember is that you need to make a profit. You need to analyze the existing demand, set it off against your costs (including overheads), and mark it up to maximize your profit without losing your clientele.
Research your market, your clientele, and your product. Be thorough. Check as many places and people as you can. This will help you arrive at the right price that will be fair to both you and the consumer.
Understand your costs first, and then understand the market. In the market, understand your competition’s prices. See where you can cut your costs, to be competitive, but be careful to get only the right amount of supplies, and from the right place. Find your competitive advantage, which will help you increase your profits.
Value Proposition. Of course, you can add additional value, so that you create a niche market or offer something your competition does not. This will allow you to raise your prices up based on the perceived value. Also, when you periodically review your prices, remember to explain to your customers how the new price benefits them, and what new thing is offered to them. This will help boost your sales as the customer understands that the brand and product work for the customer, and they will appreciate your product more.
With all these things to think about, you don’t need to worry about overhead costs. You need products that cost little. Swipe’s mobile POS system is one such where you can use a great product for lower prices. The Swipe Mobile allows you to take the POS system to the customer. Products such as these can help you focus on what is more important. You can devote your time to producing quality goods that will attract more returning customers.
Ultimately, your pricing should be competitive, but not harmful to your own business. With practice and market research, you will understand the happy middle ground where you meet your customer’s expectations, match your competition, and turn a profit.
