The,Price,Right,How,find,optim DIY The Price is Right! - How to find an optimal price for you
Normal 0 false false false MicrosoftInternetExplorer4 /* Style Definitions */ table.MsoNormalTable{mso-style-name:"Table Normal";mso-tstyle-rowband-size:0;mso-tstyle-colband-size:0;mso-style-noshow:yes;mso-style-parent:"";mso-padding-alt:0in When starting a new work at home business it is very easy to become consumed by it. We spend so much time trying to get the business up and running that we may end up becoming burned out and lose our motivation. There is so much to learn and
Coming up with the right price for your product isessential to keep the customers assured about the utility derived from it. Itis a known fact that producers aim at maximizing their profits. This is theprimary goal of every producer. This does not mean the rising of prices tounreasonable levels as this would discourage the customers from giving yourproducts a second glance. In addition, lowering the prices would have theeffect of attracting to customers to your products. However, it could also meanlosses for your company; a situation that would not be desirable.In this case, therefore, it is important that youfind some way of coming up with an equilibrium price which would retain andattract customers while also ensuring your profitability. It is important toacknowledge that there is no blue print as to the best method of coming up withthe right price for your products. You also need to understand that prices arealways changing and; therefore you will need to revise them. However, thefollowing techniques should be of help. It would be important that you orient yourself toyour target market as well as your customers. This entails incorporating someknowledge about your products. If the products were meant for high-endcustomers, lowering the prices would decrease demand, as the product wouldappear inferior. Similarly, products that are insensitive to changes in pricesshould have higher prices, for example, products for weddings, as many peoplego beyond their budget to make the best of the big day. Low priced productswould definitely make the wedding look cheap, which is not desirable at all.In addition, you need to evaluate the willingnessof the customer to pay a certain price. In this regard, you would need to lookinto the utility the customer would derive from the products. This would demandthat you ask questions pertaining to reduction of risk by the product for thepatron; how much the customers life is enhanced by the product as well as anyadditional profits the consumer would generate from the product. In addition,you will need to ask yourself about the price that would appear too cheap ortoo much to the customer. You will acknowledge that quantifying some of thesebenefits that the buyer derives is not very easy. It would be important,however, that you be guided by the amount that the customer would be willing topay for the product, and not how much it costs you to produce it.You needto acknowledge that the price-setting strategy is more or less a trial anderror method where you set the price at a certain level then revise it latereither upwards or downwards. This should be guided by the performance of theproduct in the market at particular prices. It is difficult to predict theappropriate prices for the particular products or even the trend of changes.However, increments would do very well especially in cases where you areproducing many commodities, as the customer may take some time before knowingthe products for which you just raised the price. YoursSincerelyAnnetta PowellYour Professional Success Coach
The,Price,Right,How,find,optim