A suitable price can be either low or 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.
Instructions
Step 1
Analyze what place the product occupies in the general scheme of making a profit. If you watch the retail trade, you will notice that the products fall into three categories: regular, hooks, and exhibits. Ordinary goods / services bring the owner the main profit. This is where you should focus on your competitors. Hooks are designed to attract customers to a store or company office. Items on display serve as a distraction.
Step 2
Supply low prices for hook products. These products may not be profitable at all. It is important to hook a potential customer so that he gets used to going to a particular store. As an example, think of supermarkets that charge low prices for hot goods and, along the way, make money on everything else.
Step 3
Set as high as possible, even inadequate, price for the item on display. Perhaps no one will ever buy such a product. But next to it, other goods / 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 specially selected. The store should have a "museum corner" where those who wish can gawk at the super-expensive offer.
Step 4
Make a regular mark-up on the goods from which you plan to have the main income. If the product is sold everywhere and customers know the prices very well, you can target your competitors. If there are seldom purchased items in the assortment line, the correct price for them may be higher than usual.
Step 5
Test price thresholds. Based on personal experience and for 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 start to analyze and doubt. Try to put different numbers: 99, 100, 104, etc. Change prices, measure results, draw conclusions about the correctness based on the reaction of the market.
