photo credit: estraire
Pricing has always been one of the greatest games in business. In times of scarcity, this is ever so true. The price you offer has to reflect value, convey trust and cover costs of sales, delivery, and unfortunately, collections. And you have to be able to get your price. As stated on Profitable Growth.
There is more than one way you can get your pricing wrong. You could price your items way to high or you could price them way too low. So how do you know if you have done either? One sure way to tell is by the buying habits of your customers who come in. If they fall short of laughing at the price tag and walk right out of your door than most likely your prices are too high. However, if they come in, see a tag, get a big ‘ol smile on their face and then proceed to buy a dozen of the item then there’s a good chance that your prices are too low.
Your price is the ultimate demonstration of the value your items hold, so how do you get the price just right? Usual markup on a product is around 50% but this also depends on the product itself, location of your store as well as the value that this product brings to the table. So when pricing take all of that into consideration and do some tweaking of your own, you can always go back and either rise or lower the price at a later date after viewing the customer response.
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