The Price Is Right: Strategies for Finding the Ideal Price for Your Products - Deepstash

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The Price Is Right: Strategies for Finding the Ideal Price for Your Products

shopify.co.uk

Setting the right prices for your products

This is a balancing act. A low price isn’t always ideal, as the product might see a healthy stream of sales without turning any profit. Similarly, when a product has a high price, a retailer may see fewer sales and “price out” more budget-conscious customers, losing market positi...

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  • Understand costs. If you order products, you have a straightforward answer of how much each unit costs you, which is your cost of goods sold. If you create products yourself, you’ll need to determine the costs of your raw materials.
  • Define commercial...

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  • Cost-plus pricing: You make the product, add a fixed percentage on top of the costs, and sell it for the total.
  • Competitive pricing: It refers to using competitors’ pricing data as a benchmark and consciously pricing your products below theirs.

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  • Price skimming: It refers to when an e-commerce business charges the highest initial price that customers will pay, then lowers it over time.
  • Penetration pricing and discount pricing: It’s no secret that shoppers love sales, coupons, rebates, seaso...

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