How to Price Your Products?

[Maria]

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 behaviour, 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.

[Henrywrites]

It is truth that people don't buy cheaper products. They want to have this feeling that they are paying for value and aiming to sell very cheap can hurt in the long-term. So, when pricing your products, you should study how customers or clients in your line of business behave and work it along their line of thoughts.

[Jason]

What's funny is that many things are priced more based on location. For instance, I can get a breakfast biscuit at a local gas station for 99 cents and the same thing would be much more at McDonalds or some other fast food place - and the taste is the same!

Anyway, though, online maybe the same situation exists. If you got the person in the right area, then they might be duped into paying more, but of course, I don't like cheating people.

[deucher]

It is very difficult to do this because the main rule that should not be followed is that you cannot set the lowest price on the market. First, you can start dumping the market when everyone starts to lower and lower, from which you yourself can suffer. And you don't need to set the highest price because no one will buy from a beginner at the highest price.