Pricing Your Products Appropriately
Pricing your product is a very important step in cornering hopefully a good share of the market you are showing interest of. As far as the consumers are concerned, numbers are not lying. In other words, if you want to validate the price that you are planning to use you have to have the numbers and the figures to back your claim and reasoning ready for scrutiny and analysis.
The most important thing here is to ask yourself first, as a customer, how much are you willing to pay for that specific product. This is not actually just another easy question to determine because in general or 9 out of 10 cases there is a great possibility that you wouldn’t even buy the product if it is not your own.
So how would we explain this? Well, it has something to do with the fact that you see the product as something of your own craft and effort which somehow leads to lack of judgment, adding biases and other factors.
Anyway, let’s examine first things first. How much are you willing to sell it? Or in another way of saying it, how much are you willing to let go? I am personally suggesting that you go as low as possible, from any choices your mind might think of. This includes the base cost for the materials you used and for how long you worked on it. Only then can you entertain thoughts of placing in additional costs like labor, transports and tax.
When you get the overall sum of everything, find the cost and divide it according to the numbers produced. What you have then, is the base price for your products. The next bit is paying for the labor. Assuming, you employ yourself to make your product. By default, it’s not free. In business, nothing is actually free. Remember that. Include what you will pay yourself with into the product’s base price.
Take on a customer’s point of view and see if you would buy your own product. If not, the courses of action you will have to take will either have to be to raise the quality and utility of your craft, or to lower the price itself.
Arriving at the right which the market can appreciate will likely lead you to more success and good branding!