The best price.

Discussion in 'Growing and Managing a Business' started by 50Cent, Oct 20, 2011.

  1. 50Cent

    50Cent
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    How can i come up with the best price for my product after comparing it with 3 to 4 businesses who is doing the same thing as me?

    Any advice.?
     
  2. ArcSine

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    Would a typical potential customer who's looking to purchase the product, be fully aware of these other choices and prices? In other words, is this a product that's well-known and well-advertised?

    If this hypothetical customer is aware of the choices, are there any differences that might justify your having a price that's higher or lower than the competition? (You're the only distributor locally, and so your delivery costs are lower, say; you offer a longer warranty, etc.)
     
  3. 50Cent

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    I would say the typical potential customer will be semi-aware that there will be other choices and prices. Other companies are semi-known and advertised, in other words they have a constant amount of customer from what i can see. My product is on selling t-shirt and it is not well known or even known yet to the public. I guessed most people will go for designs 1st before prices.

    Maybe i would say the printing cost and design made on the t-shirt will justify the prices of the t-shirt being sold on the store?
     
  4. ArcSine

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    Understood. If the designs are unique (something eye-catchingly different that what's currently available) you could certainly get away with pricing yours at a reasonable premium to the market. This also assumes you can get put your product in front of enough eyeballs to drum up sufficient demand volume.

    Do you have any way of doing a little market research? Any way to show prototypes to some strangers who fit your target clientele, and asking what they'd be willing to pay?
     
  5. 50Cent

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    Like doing surveys?
     
  6. ArcSine

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    That's certainly one possible approach. Your own judgement is probably the best guide as to how to go about getting your finger on the pulse of folks' opinions regarding price levels for your product. It'll depend on the details specific to your situation (location, product's specs, target market, ready access to a lot of foot traffic, and so on).

    But before investing time and money in that direction, make sure there are no products already out there which are comparable enough to yours such that you could glean some pricing ideas from them. Don't reinvent that wheel unless you have no choice.
     
  7. 50Cent

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    Ok. What if i have a similar product like selling t-shirts and that what i am planning to do. But i am willing to offer more than what the competitors offered to the customers. Meaning i am willing to do more than the others. Will such approach works?
     
  8. Joel

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    Try setting a price that is lower than what your competitors are offering. If not, then average.
     
  9. JPM

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    Be careful. That's not always the best approach. If you can offer a better quality product or service there is not as much need to compete on price. Though, naturally, it should still come into your planning.
     
  10. Smoker

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    I would advice start from the top.
    - You can go down anytime
     
  11. 50Cent

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    Can you further explain what do you mean by start from the top?
     
  12. sigma

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    Basically you need to consider on the price, quality, delivery and after sales service
    Many people think that price or quality is the major factor to beat your competitor but the fact is more and more customer are concern more on the after sales service. This is because we cant actually know how good the quality of the product before using it for some time, after sales service give customer confident on the product and they no need to worry about the quality
     
  13. Smoker

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    I am sorry, I did not realize you are a designer. You can go this way -

    If you are selling cushions from China...
    Make the site and name it chip-cushions.com /with lovest market price.
    Clone this site, add articles and news (blog) about cushions, name it lovely-cushions.com /with regular market price.
    Clone again, make it boutique looks like, name it boutique-cushions.com /with top market price.
     
  14. 50Cent

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    What do you mean by after sales service? It is getting in touch back with the customer and constantly asking for feedback?
     
  15. 50Cent

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    Can anyone still explain what does after sales service?
     
  16. Ayen Mahinay

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    very simple compare your expenses and sale.
     
  17. sigma

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    Follow up with the customer whether they are satisfy with the product, helping them to solve the product related problem if any, serious on taking action if any abnormality happen on the product etc
     
  18. 50Cent

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    Oh ok i got it.. Anymore?
     

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