Raise Prices?

Discussion in 'Growing and Managing a Business' started by Redd, Aug 15, 2015.

  1. Redd

    Redd
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    Would you do it to make it appear like the products or services you sell or of a superior quality? Apple, for example, is one company which prices their products and although expensive they are, they outsell all their competitors.

    If you sell products which you make yourself, would slapping a ridiculously high price on them be good for your business? Or is it better to start by setting your prices a little lower than your competitors and work your way up?
     
  2. pwarbi

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    While this technique might have worked in the past, I think people are becoming a lot more wiser now, especially when it comes down to money.

    People these days are more and more looking for value, and while they are willing to pay, thru refuse to be overcharged anymore.

    If your selling something but it's more expensive than your rival, you're going to have to be able to justify that extra expense, other wise your customer is obviously going to go for the cheaper price.
     
  3. Diane Lane

    Diane Lane
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    I price my items reasonably. I have seen some who do this, and there are all sorts of tricks people can use to bump up their sales numbers, to make themselves appear successful, which could entice some buyers into believing it and paying the high prices, but I prefer to list my items at reasonable prices and let the quality and design speak for themselves.

    One thing that does sometimes help with sales for some reason though is if an item hasn't sold in a while, to go in and increase the price. For some reason, perhaps that people tend to be creatures of habit, and might only look in certain price points, the item will then sell. I think maybe the interested party didn't initially see the item because s/he wasn't looking in the price range where the product originally fell, so didn't see it until the price was raised.
     
  4. kaian

    kaian
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    If I were a small retailer I will not survive if I price my merchandise a little lower than the competitor. If the products are really a value for money then I have all the reasons to price them a bit higher or so. Customers are well informed and smart enough to tell the difference and surely know where to go next should you fail to meet their expectations.
     
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  5. kitchie

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    In pricing you're product you cannot start higher and then drop because of no sales. I suggest make it the lowest price possible and when you see that your business is growing that's the time that you can raise your price.
     
  6. HooktoWin

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    Hey Redd,

    The pricing issue depends more on intangible factors (e.g. what makes you unique, risk reversals, presentation, etc.) than on value or money.
    • Basecamp.com is a great example. They charge more for a product with less features, and customers happily pay.
    • Apple, like you said does this. You can get a more powerful computer (more value) for less money, yet customers by from Apple.
    • Designer clothing brands charge 10x more than their discount competitors. Are they 10x better? Pretty unlikely.
    People are getting better at sniffing out sites that demand more money without giving anything in return. But the issue with many of these companies is the fact that they DO give customers something more in return. Basecamp has amazing service, their product is ridiculously easy to use; Apple and designer brands give customers prestige.

    Instead of appearing to be high quality I'd simply create a higher quality product and give people the things they value.

    Does that help?

    Andrew McDermott
    HooktoWin.com
     

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