Setting a price is very essential in the success of a business. Price is one of the things that make up the success of a business because it is the amount you set that it will be sold.
As price is the success of a business, there are restraints to setting it up to maximize your sales. As it is well known that all businesses have competitors but the question is what can you do to outrank your competitors?
A particular product might be sold at the same price by similar firms but there is a way you can always set up your product’s price to differentiate you from them. Though, you sell the same product.
An industry that involves similar firms that sell Toothpaste at $1 will have problems selling the toothpaste because they are all under the same roof selling the same product but do you know if you are under the same roof with your competitors can sell more?
If the original price of the toothpaste is $0.70 and your competitors decided to sell it at the rate of $1 you should sell yours at the rate of $0.90 to increase your customers.
As it is well known clearly that a business that sets a lower price for Its product will sell more compared to similar businesses that set a higher price.
Although, you might be wondering that the profit is too low but as a developing business, that’s the best you can do to get more customers. With my analysis, I discovered that people love to Patronise new businesses because they want to know what sets you aside from your competitors.
The only thing that sets you aside from your competitors is the price at which you all sell your product.
You should note that it is not the same price you sell it at a start you will sell it forever. Selling at a lower price at a start is just a strategy to maximize your sales.
You will sell at the normal price of $1 after you have gathered more customers but does that mean your sales will reduce?
Here is why your sales will not reduce if you sell at the normal price your competitors sell it back
Initially, you were supposed to be selling at $1 but as a strategy that needed to be adopted to maximize your sales you sell it at the rate of $0.90 then after about 3 months, you increased the price to $1…
The reason why your customers will stay is because of the relationship they have built with you and your business. Your customers will feel no need to move to other businesses that sell the same product as you.
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That’s why it is important to build a mutual relationship with your customers.
Customers will also feel no need to Patronise you less because they will also consider that since you all sell at the same price, why should they stress themselves by going to other outlets.
Therefore, Setting up the price of your product contributes more to the success of your business.