Hello Readers,
Are you really pissed out with the condition of your sales, Don't worry. I have brought something very special in this post which will make exponential growth in your sales and will make it count..
In this post I will answer three major questions which will help you to boost up your sales:-
1) Why is proper pricing of product important for your business?
2) How can you price your product and services properly?
3 What is the difference between retail and wholesale pricing?
Now before going further into this post. Let us consider a situation, that suppose you are having plant store which sells baby plant and your create different types of soil which are suitable for specific plant. Suppose that you are very good at botany and you can make good quality of soil but your business and marketing skills are poor and you are not 100% sure that how to come up with the prices of the different soil. Here you have to consider one more thing that some of the soil which you sell have to be perfected in a lab, while other are just what you dig out of your own garden.
Now your competitor near you is proving particularily tough for you to put a price on. At this point of time you are very much confused and just want to shut down your store and forget about it. But since this is not really an option for you. Let us look what option is there for you, and what should be your next move?
Now let me answer the first question which is mentioned above:-
There's a lot more to pricing than how how much you choose to charge for your product and services. In fact, the pricing can even determine how much successful your business is, So yes pricing is very important for any business. Pricing can also help you figure out how much profit you'll be making from your sales. Plus, the price of your item is something which will the main attraction for each and every customer. Even been at some low standard or second-handed store and the costumer find something super cheap- which he does not even care about, then also it will attract him and he will eventually purchase that.
With a right price can also make your product more appealing to the costumer. A low price for example, might help people fell like it's a low risk purchase. A high price, though can though make you your product appear luxurious or valuable.
Setting the right price of your product and services properly:-
So now the question comes that how should you acutally hit the right price for a particular product? Well this all starts with figuring out your costs, which means taking a deep look into your business.
The first step to this is start by finding the cost of your materials: the stuff used to make your product. In your calculations, remember that every item affects your bottom line - like if you are a mechanic both the cost of your spanner and the materials you use for repairing the automobile, are all the part of your material cost. You also need to figure out your labour cost: the time and money which it takes for you and your team to work on your product. And all other factors like the managing, shipping and costumer service, and also don't shortchange the amount which you have to pay to yourself. Lastly you need to know all your additional expenses. List out each and every operational cost that impacts your product, from the marketing to the cash register ink all you have to consider. Then, add your labour, materials and expenses together to find out your total production cost for the item.
Once you know how much it costs to make your item, now consider the amount of items you can sell. Then divide the total production cost by this amount to get the items break even price:(break even price is the lowest price on which you can sell it without losing any money)
Okay - now you probably know the lowest price that you can possibly charge to stay afloat. Now, its time to figure out how much profit you want to make.
Off course lots of people want to earn as much as possible and as easily as possible, so they can sit around in their house and drink and enjoy. But the costumer might not want to pay you the prices that will send you to your home and allow you to rest over all day round.
Instead, find the total profit that will allow you to reach a reasonable goal in an appropriate time frame. Perhaps it's a business goal like launching your next product, or a personal objective, like paying off your credit card debts. Once you know the total profit you want to make from your sales, then consider the amount of stuff you can sell. For example, if you can produce and sell a lot of your goods, you can make a smaller profit on each sale and still do big business.Study the pricing of your competitor pricing, too. See if the profit you want to make means charging more than they do. If this is the thing then think how you can justify that to your customer. It might means offering them a higher quality product or a better shopping experience. With all this info, you can decide on the minimum profit you want to make. Knowing your minimum will help you figure out how close to your break-even -price you can get and still move towards your goals.
Now, before you put a price on your product, it's wise to consider who's doing the selling, so you know whether you are going to charge a wholesale or a retail price.
Difference between Wholesale and retail price?
Now let us again go back to your plant shop and your soil. Suppose a Superstore named xyz wants to stock his stuff from you, since they will buy in bulk, You can offer them the "wholesale" price (your break even price plus your minimum profit) and still do well.
But if you choose to sell your product to the customer itself, then you will have to mark it up to a "retail" price which many business set it twice to that of the wholesale price. This will cover the operating cost of your store while still letting you to make a good profit.
If you are still worried that your prices are too high than your competitor than you can try decreasing your costs, buying materials in bulk, sharing office space, or taking on more task on yourself can help you in lowering your break even price, which can help you to decrease your prices.
Hope you got the understanding on how to set your product prices to attract more costumers.
Comment down to show your love.
Are you really pissed out with the condition of your sales, Don't worry. I have brought something very special in this post which will make exponential growth in your sales and will make it count..
 |
| Sales Growth Strategy |
In this post I will answer three major questions which will help you to boost up your sales:-
1) Why is proper pricing of product important for your business?
2) How can you price your product and services properly?
3 What is the difference between retail and wholesale pricing?
Now before going further into this post. Let us consider a situation, that suppose you are having plant store which sells baby plant and your create different types of soil which are suitable for specific plant. Suppose that you are very good at botany and you can make good quality of soil but your business and marketing skills are poor and you are not 100% sure that how to come up with the prices of the different soil. Here you have to consider one more thing that some of the soil which you sell have to be perfected in a lab, while other are just what you dig out of your own garden.
Now your competitor near you is proving particularily tough for you to put a price on. At this point of time you are very much confused and just want to shut down your store and forget about it. But since this is not really an option for you. Let us look what option is there for you, and what should be your next move?
Now let me answer the first question which is mentioned above:-
There's a lot more to pricing than how how much you choose to charge for your product and services. In fact, the pricing can even determine how much successful your business is, So yes pricing is very important for any business. Pricing can also help you figure out how much profit you'll be making from your sales. Plus, the price of your item is something which will the main attraction for each and every customer. Even been at some low standard or second-handed store and the costumer find something super cheap- which he does not even care about, then also it will attract him and he will eventually purchase that.
With a right price can also make your product more appealing to the costumer. A low price for example, might help people fell like it's a low risk purchase. A high price, though can though make you your product appear luxurious or valuable.
Setting the right price of your product and services properly:-
So now the question comes that how should you acutally hit the right price for a particular product? Well this all starts with figuring out your costs, which means taking a deep look into your business.
The first step to this is start by finding the cost of your materials: the stuff used to make your product. In your calculations, remember that every item affects your bottom line - like if you are a mechanic both the cost of your spanner and the materials you use for repairing the automobile, are all the part of your material cost. You also need to figure out your labour cost: the time and money which it takes for you and your team to work on your product. And all other factors like the managing, shipping and costumer service, and also don't shortchange the amount which you have to pay to yourself. Lastly you need to know all your additional expenses. List out each and every operational cost that impacts your product, from the marketing to the cash register ink all you have to consider. Then, add your labour, materials and expenses together to find out your total production cost for the item.
Once you know how much it costs to make your item, now consider the amount of items you can sell. Then divide the total production cost by this amount to get the items break even price:(break even price is the lowest price on which you can sell it without losing any money)
Point to consider-: If you sell more than one thing, look out for the costs that affect more than one product - costs like website hosting fees or the rent for your office. Then when you calculate the break even prices for an individual product, be sure to divide these general costs against all the goods they apply to.
Okay - now you probably know the lowest price that you can possibly charge to stay afloat. Now, its time to figure out how much profit you want to make.
Off course lots of people want to earn as much as possible and as easily as possible, so they can sit around in their house and drink and enjoy. But the costumer might not want to pay you the prices that will send you to your home and allow you to rest over all day round.
Instead, find the total profit that will allow you to reach a reasonable goal in an appropriate time frame. Perhaps it's a business goal like launching your next product, or a personal objective, like paying off your credit card debts. Once you know the total profit you want to make from your sales, then consider the amount of stuff you can sell. For example, if you can produce and sell a lot of your goods, you can make a smaller profit on each sale and still do big business.Study the pricing of your competitor pricing, too. See if the profit you want to make means charging more than they do. If this is the thing then think how you can justify that to your customer. It might means offering them a higher quality product or a better shopping experience. With all this info, you can decide on the minimum profit you want to make. Knowing your minimum will help you figure out how close to your break-even -price you can get and still move towards your goals.
Now, before you put a price on your product, it's wise to consider who's doing the selling, so you know whether you are going to charge a wholesale or a retail price.
Difference between Wholesale and retail price?
Now let us again go back to your plant shop and your soil. Suppose a Superstore named xyz wants to stock his stuff from you, since they will buy in bulk, You can offer them the "wholesale" price (your break even price plus your minimum profit) and still do well.
But if you choose to sell your product to the customer itself, then you will have to mark it up to a "retail" price which many business set it twice to that of the wholesale price. This will cover the operating cost of your store while still letting you to make a good profit.
If you are still worried that your prices are too high than your competitor than you can try decreasing your costs, buying materials in bulk, sharing office space, or taking on more task on yourself can help you in lowering your break even price, which can help you to decrease your prices.
Hope you got the understanding on how to set your product prices to attract more costumers.
Comment down to show your love.
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