Determining the best price is the main process in business methodology. On the one hand, the underestimation of the cost makes the product more attractive to the consumer, but on the other hand, it lowers the status of the trading platform as a whole. Technologies exist to find a balance between these two factors.
It is necessary
- - cost of goods
- - analysis of the pricing policy of direct competitors
- - consumer demand analysis and hall test results
Instructions
Step 1
Estimate the cost of the product using the formula: "cost + desired profit". This value will serve as a starting point for further calculations. At this stage, it is important to determine which of the factors is most important in pricing: ensuring long-term profit, getting consumer traffic, or increasing the volume of sales (quick sale) of an existing product. If the first option is the main factor, then the value according to the formula remains unchanged. The second and third options force the entrepreneur to lower the price.
Step 2
Study the pricing policy of your direct competitors. At this stage, it is important to obtain reliable data. In general, competitor analysis is best done on a regular basis, as the dynamics of the pricing policy of market participants play an important role in making forecasts.
Step 3
Compare the estimated price from the first step with the prices of a similar product from competitors. It is important not only not to exceed it, but also not to go into dumping.
Step 4
Conduct hall tests (consumer surveys that are conducted directly on the marketplace immediately after purchase). To do this, compose a list of questions, which may consist of direct and indirect statements. For example, you can ask questions: "Do you think 100 rubles per package is an affordable price for a pair of tights you just bought?" or "How much should the pantyhose you just bought cost to get you more often?"
Step 5
Seek services from specialized analytical companies that will compile a questionnaire, allocate personnel and systematize the survey results.
Step 6
Chart price analysis on a coordinate system. If you have followed all the steps, then you should have 3 curves: the desired price (calculated by the formula), competitive offer and consumer expectations. As a result, the optimal price for a product should be located below the competitive cost curve for a similar product, and as close as possible to the consumer expectation curve. The optimal price is assigned according to the highest value in the interval, and the lowest value leaves the opportunity to set discounts on the product to increase sales in the future.
