Find the Pricing Sweet Spot
Pricing is always one of the biggest bones of contention in any type of commerce. This is an issue that experts in the industry, such as Jason Rowley, have commented on. A close study of the matter reveals that the trick is always to find the sweet spot. This is the amount that gives you the maximum amount of profit while still being reasonable for customers.
Conduct a Market Survey to Determine Pricing
The first move that experts like Rowley recommend is to conduct a market survey. A bit of timely research will show you how products and services similar to yours are normally priced. Make sure that the goods you are looking at are solidly within your target audience’s demographic. This will become your ultimate point of comparison.
Survey the Needs of Your Target Demographic
Your next move should be to discover what the precise wants and needs of your demographic consist of. The first thing you need to do is determine who exactly you are selling to. Where do they live? Are they young or old? Are they male or female? What type of goods do they most often buy from you? What else do they usually buy?
Once you discover what their buying habits are, you can sell directly to them. You can also adjust your marketing to appeal to their exact tastes. At the same time, you can also ascertain what they are willing to pay. If you notice a line of budget goods selling more than others, you can adjust the rest of your pricing to match it.
Don’t Be Afraid to Ask for Feedback
One of the very best things you can do to determine pricing is ask your audience how much they are willing to pay. Of course, you don’t have to come out and ask directly. The key is to elicit responses on certain goods via customer feedback. As you get more opinions on some of the items you are selling, you will also notice comments about the price.
For example, if you ask for feedback on scuba diving supplies, you will probably get plenty of opinions on how safe these goods are. As you delve deeper into the issue, you will also get feedback on how well priced they are. For example, you may see an item being described as a bargain. If you see the opposite, you can announce a flash sale.
Consider the Value of Your Goods
The last thing you should ever be willing to do is to sell your goods at a level that falls below their true value, according to Jason Rowley. This means that if you receive a shipment of walnuts for $100, you should never sell them off for less than you paid.
This is a bottom line that should be reflected in the price that you charge your customers. You can check sales levels and customer feedback to ascertain the level at which you can safely maintain a profit.