Pricing of our product II
We are back and today we will provide you more advices about under pricing and over pricing of your products. We also decided to reveal part of our pricing strategy which price we finally choose and how we did it! So wait for it!
Firstly we must realise what we want to achieve with our pricing strategy. We want to make money and generate enough revenue to keep our business running and expand our business in future. We should also realize that the selling price is a function of our ability to sell and nothing else. At the same time you must be aware of the risks which accompany making poor pricing decisions. There are two main pitfalls we can encounter
- over pricing - it can be just as detrimental since the buyer is always going to be looking at your competitors pricing. Pricing beyond the customer's desire to pay can also decrease sales. We must be aware of the fact - some people tempt to price too high, because they think they have to cover all the expenses of people who for them, the lease, the initial costs. However we must put ourself in the customer's shoes and decide what is the fair price for us. To get feedback from customers is also recommended, just small questionnare whether they were satisfied with pricing or not.
- under pricing - pricing a product too low can have a disastrous impact and effect on our product as well as over pricing our product. Many of the business owners believe this is the way they should price their products and they ought to do in down economy. Actually under pricing of your products to convince your customers is in many cases simply perceived as cheap. We must remember that consumer want to feel that they get their "moneys worth". And most of our customers are unwilling to purchase from a seller they believe to have a less value.
And so we are! All customers behaviour is in some details similar
And now let's reveal part of our secret!
To price our product and to come up with some acceptable price we mainly took in consideration our consumer's needs. We went to popular Russian shops and we conducted a small research, you can see our results below:
To price our product and to come up with some acceptable price we mainly took in consideration our consumer's needs. We went to popular Russian shops and we conducted a small research, you can see our results below: 
There are prices which we used for calculation of the final price of our products.Finally we decided to price our product at intervals <28 48="">.Tables are supported also by some current carrot products, chips and snacks which are nowadays available on the Russian market.
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1 comments:
The price is always a challenging issue, but I think for the BabyCarrots snack it should not be more than 30 RUR per pack (64 gr) otherwise people who are health conscious can decide to buy ordinary vegetables or fruits (just to have a snack) and people who like unhealthy snacks will chose chips or crackers as they are cheaper and they completely satisfy their need to eat something crunchy and tasty:)
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