How do you determine the price to sell out your products? What are the factors that come into play when deciding the price(s) of products?
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How do you determine the price to sell out your products? What are the factors that come into play when deciding the price(s) of products?
There is no an straight answer to this question, but you need to consider two aspects. Market, how much the market is actually paying for a product like yours, this can give you a general perspective of the price range. Second percepción, reality and percepción are two different things, people decide based on perceptions. what are you going to do, so people perceive your products in a different light, if you succeed doing that you could sell your product at a premium value.
Selling price = Cost of manufacturing + manufacturer’s margin. Selling price deciding is as simple as this. But brands play with their own margins in order to get the customers & sales of their products. Big brands sells their products in larger quantity thus can afford lower margins in turn for higher revenues. But some brands which are well established, also feels that they should get premium for their established brands, thus they ask for premium (Higher margins) over their Cost of manufacturing, leading to higher prices. Small brands sells lesser quantity thus their selling prices totally depends upon their Manufacturing costs & are adjusted to market prices.