Pricing your products accurately can get pretty tricky, especially if you’re a first-time seller about to launch your webstore.
Whether you do it right or wrong, it can play a big factor in determining the success of your online store. That’s why it’s important to get it right from the get-go.
There are many ways to approach product pricing. You can choose to go premium and price your products above your other competitors, or you can focus on price competitiveness by lowering your product pricing.
So, what do you need to know to price your product the right way? Here are a few tips:
- Understand the market
Ideally, you should know your product like the back of your hand. Only by understanding what your product has to offer and the average consumer demand will you be able to have a clearer idea of whether your product pricing has the right market fit.
- Study your main competitors and indirect competitors
You shouldn’t go around copying what other competing webstores are doing, but instead, use them for comparison sake. Try to collect as much information as possible about all your competitors, both direct and indirect competitors. Take a look at how they’re pricing their products and whether it tallies with their brand personality. Are they premium, or are they going for affordability? Compare them across the board and adapt your prices accordingly.
- Know your profit margins
This is a key step. Your product pricing wouldn’t matter if you’re making razor thin margins, unless you’re selling products in huge quantities (which most small to medium webstores don’t do, anyway). Profit margins are a subjective matter, but you should be safe if you’re drawing around 30-50% profits at least, after taking into account the stock price, shipping, marketing, and so other related costs.Tags: ads, businesstips, E-commerce, ecommerce, ecommerce platform, ecommercebusiness, facebook ads, how to run promotion, marketing, online platform, online seller, onlinebusinesstips, onlineselling, onlinestore, sell on facebook, tips
This post was written by Nina