Promotional costs will be so large that they can affect profits and possibly suffer losses for a certain period of time, even though your product will get high reviews and a good rating, but is it possible to cover the losses that have occurred by increasing prices little by little.
Competitive pricing in business
- Thread starter Starmix
- Start date
In the business that I do, the price I set is the minimum break-even price between the capital price plus existing operational costs, so that I don't make a loss. When I just launched a new product I didn't really expect high profits. Yes, that's the secret to selling online.
The theme in this topic is competitive pricing in business, so even though you determine the BEP price, is the price of the product you sell competitive in the market or is the price of your product lower than similar goods?
When I first launched the product I tried to set a price that was cheaper than the price prevailing on the market. I can install it by looking for quality raw materials or products but at a cheaper price, so I can reduce production costs.
Woo, you have the talent to be a reliable and successful businesswoman, so you can reduce production costs. Even though you have looked for quality raw materials but the price is cheaper, what about labor costs and overhead costs such as electricity, gas fuel, utilities, etc.
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- #26
That is a good way to gain the trust from your old and new customers. Your technique is the best. You are indeed expert on that online business. How I wish you could share me your technique.
Pricing is important both for attracting the customers as well as for the business to run profitable and smoothly. Pricing would take in account a number of factors like cost of production, labour charges, transportation etc.. Consumers would always go for products that are worth every penny spent on it.
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- #28
Pricing in business must follow the standard rate imposed by the price regulation and control department. You can reduce your pricing to attract customers but never could go beyond the Suggested Regulatory Price (SRP).
If this was actually the case things would have been a lot easier, especially in my country. These business owners do not follow the price that has been set Down simply because they want to have all the customers.
I produce the goods I sell at home because it is still on a home scale, so I don't think too much about the costs of renting a place, water, electricity, etc. I only calculate the cost of raw materials for the product and operational costs in the production process. And hey, I'm still pioneering and learning, so it's not right to call me a talented female entrepreneur.
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- #31
People in my country follow the pricing standard in unifirmity. There's price control council place to place or city to city. Those who won't follow will have their licenses confiscated by the pricing authority.
This is really a good move, it would make traders and business owners strictly follow the given price. Over here even when a price is set but the committee of that particular business sector, some traders go behind and sell their own price. Like i remember last year all the photographers and printing press within my locality came together to agree on a particular price. They agreed but some still went behind giving customers their own price.
No, I am not yet an expert in online business, until now I am still learning and continuing to learn to develop my existing business. My business is not as successful as other people out there, but I try to move towards success every day.
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- #34
It is not good, why didn't they follow what has been agreed? There are greedy people by the way and we cannot control their greediness. They have their secret agenda. They are like engaging in a black market.
Sometimes in a market organization there is a kind of community of traders, they consult with each other to regulate the prices prevailing in the market. So no one is allowed to sell below or above the price prevailing in the market, if anyone violates this he will be expelled from the market.
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- #36
It's also the same in my country but as far as what my Nigerian friend told is concerned there's plenty of fraud in their country manipulated by their own government favoring the unskilled workers. They agreed the pricing but after their meeting per se , people create their own pricing.
That is cheating. If someone is bound to a community then he must follow the existing rules. Meanwhile, I am not tied to any community, so I can set my own price for the products I want to sell. Except for certain products for which I am a reseller, there are price rules that I must set.
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- #38
Greediness kills, It's also like a disease that has no cure. Those who do monkey business will be punished by themselves alone when buyers refuse to buy their overpriced products.
Nice
Well like you said it is due to greed i guess their mindset was that by the time others agree to the new price the would secretly sell at the old price that is cheaper hence more clients would come to them.