How to set the perfect price for your products?
Starting a new business means setting all things right before you even begin. So what about your product pricing? Gave it a thought before starting to sell? A little preparedness can help you a lot in understanding the product pricing strategy. Check out what you need to know to set a good price.
Starting your own business is very exciting.
Thought of your business idea? Check
Thought of your TG? Check
Thought of your shipping mode? Check
Thought of your product price?
Started scratching your head?
Yeah. product pricing is one of the factors that most sellers may often ignore at the initial decision-making phase. It’s a no brainer that it’s a crucial part of your business and need to be figured out before you start selling. Also, setting your product price can seem to little tricky as you need to take care of various factors.
But don’t worry. It’s not that complex. All you need is to keep some points in mind and you’re good to go.
1. Figure out all the costs and fees
To decide your selling price, you first need to find out your cost price. Now, your cost price involves much more than it looks. Here’s a list of costs and fees incurred while selling online:
- Manufacturing cost
- Cost for shipping it to warehouse
- Shipping fee
- Return fees (for return requests)
- Other unknown variable costs
So, find out all these charges involved in selling your product. That will give you an accurate number to set a profit margin. For Amazon.in, find out all costs and fees involved and how to calculate your profitability here
2. Define your strategy
You need to figure out a strategy to set your price and how you’re going to change it in future. The key is to keep a stable price. Customers trust a product more when its price doesn’t change frequently. Changing the price often makes them believe that something’s not right with the product and the seller is not being honest with them. Also, reducing price quite often may not be a profitable option for you. Having said that, it doesn’t mean you don’t offer price drops at all. Here are some occasions:
- Offering discounts when you’re launching a new product is a good idea to attract more costumers in less time
- When you’re aiming to improve your seller rank as it depends on your sales
- Special occasions, festivals, holiday seasons are periods when customers want discounts, so don’t forget to leverage that
3. Read your customers’ mind
It is crucial to understand how your customers make a buying decision. This depends on what product you’re selling. Most of the customers may tend to choose cheaper products. Playing the old-school trick can work in your favour here. If your product sells for Rs. 500, then price it for Rs. 499. The mind lets people into focussing on just the starting figures and sets the notion that the product is in fact for Rs. 400. So do a little research in understanding how your customers buy products.
The existing sellers may help you in finalizing your pricing. If you have no clue about the market price of your product, search for similar products on Amazon and see how those sellers have set their pricing. You can set your price close to the average price. If you already know the market price and want to beat the competition from the start, look at the lowest selling price and then price your product accordingly. This allows you to stand a chance to win the Buy Box and also avoid prices going downward as sellers adjust their prices to be the lowest.
5. Automate pricing tool
If you’re selling on Amazon.in then you should know that you need to win the Buy Box to increase your sales drastically. The lowest product price of any category wins the Box and gets the Buy Now button for the product page. To get the lowest price you need to set a competitive price for your product. Amazon provides a unique Automate Pricing Tool
that automatically updates your product price depending on the changes in price made by your competitors. This keeps you in competition for the Buy Box. Before starting to sell you should know how this works and how you can use it for your product.
These are some important things that you need to keep in mind before you set out to price your product. Being prepared helps you in deciding a good price right away, saving you the hassles of unnecessary repricing later. Amazon.in lets you automatically reprice so you can be tension-free and focus on growing your business. So join Amazon.in
to start a hassle-free business and get the right price for your product.