How to put the right price

A suitable price can be both low and high for the same product. In order not to be mistaken, one must be guided not only by the prices of competitors, but also by the current tasks of the business.

Instruction manual

1

Analyze what place the product occupies in the general scheme of making a profit. If you observe the retail trade, you will notice that the goods are divided into three categories: ordinary, hooks and exhibits. Ordinary goods / services provide the owner with the main profit. This is where it is worth focusing on competitors. Hooks are designed to attract customers to the store or office of the company. Exhibit goods perform a distracting role.

2

Put low prices on hook products. These products may not be profitable at all. It is important to hook a potential customer so that he is used to going to a particular store. As an example, remember supermarkets that put low prices on popular products, and at the same time earn on everything else.

3

Set the exhibit item as high as possible, even inadequate. Perhaps no one will ever buy such a product. But next to it, other products / services do not look so expensive. Naturally, the high price must be justified by something. The quality, beauty, style of such a product must be selected specifically. The store should have a "museum corner", where anyone can stare at the super-expensive offer.

4

Make the usual markup on the goods with which you plan to have a basic income. If the product is sold everywhere and customers are well aware of the prices, you can focus on competitors. If the assortment line contains rarely purchased goods, the correct price may turn out to be higher than usual.

5

Test price thresholds. For personal experience and some psychological reasons, buyers may consider a certain price acceptable and not think about the amount of money spent. If the figure is slightly higher, customers will begin to analyze and doubt. Try to put different numbers: 99, 100, 104, etc. Change prices, measure results, draw conclusions about correctness based on market reaction.