Essential steps in setting the price of your products

by Souvik on 13/03/2018
It is no secret that the price of your products eventually decides what your market share, total sales volume, and final revenue is going to be. Choosing the right pricing strategy is a major contributing factor in this regard. However, how do you set the price? What factors do you consider? If these questions have kept you awake at night, then here are some essential steps in setting the price of your offerings to help you guide through the process of decision making. Read on to discover how to price your products well.

Study the market correctly.The more you know about the market where you are intending to sell your products, better are your chances of pricing your offerings correctly. Study the buying pattern of your target audience, pricing structure of competitors, quality of competitor products, and total sales volume of the type of products that you intend to offer. Once you get a deep insight of the market, you will be in a strategic position to plan your pricing and marketing strategy correctly.

Competitor analysis is important. To identify the right price for your products, it is very important for you to know how your competitors are pricing their offerings. If your price is more for similar products, penetrating the market will become difficult for you. However, for unique items you can always go for a higher pricing model. Your strategy should depend a lot on what your competitors are doing, doing competitor analysis study extremely important to that end.

Know the value of what you are selling. As a seller, it is vital that you understand the true value of your products. Buyers will have many options to choose from and hence, you will always face competition. If your product is really unique, you may want to price it on the higher side. Try to ensure that your product is able to justify the selling price you’re quoting for it.

Identify the right pricing model. While there are many tried and tested pricing models to consider, here are a few pricing models that you can consider:

Premium pricing

Price skimming

Psychology pricing

Penetration pricing

Economy pricing

Bundle pricing

Select the one that best suits your marketing strategy. Pricing strategy does not have an one-size-fits-all policy and only the best-suited option can work in your favour.

Have a flexible approach. Never have a rigid attitude for pricing and marketing. What works today might not work tomorrow as your competitors may look to change their strategies for a better market share. Unless you continue studying the market and stay updated, you may end up losing customers.

How can Amazon help?

Incorrect pricing has resulted in the failure of many businesses. This is where advice from a world-renowned brand with proven credibility can make a world of difference. The idea is to find the right balance and price your products accordingly. If you aren’t too sure yourself, why not ask the experts of Amazon? Partner with Amazon today and enjoy the associated benefits.

As a registered seller on Amazon, you get to enjoy a wide range of benefits including pricing-related guidance from a team of experts. So, what are you waiting for? Get your products enlisted on Amazon today.

Become an Amazon seller today
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