How to set the selling price That merchants need to know ❓

How to set the selling price That merchants need to know ❓

product price setting This is another strategy for selling products and services that entrepreneurs should consider carefully. The selling price is set appropriately. Can the target customers be able to reach it or not? Or is there any technique to set the selling price that will allow us to Set high prices for goods and services that customers are willing to pay.

In this article, we will delve into the subject. Setting the selling price that has a way to calculate the selling price to be worthwhile for the business. and able to reach a group of customers, let's go see

🔸 Product pricing principles

Product price is another factor that affects our sales. It is one of the reasons consumers consider whether to buy from us or not. The principle of setting a good product price must take into account that How do we set the price for selling products and services to get the most profit? price must be attractive and must be appropriate There are 3 main methods for setting product prices:

1. The principle of setting the price of the product from the cost of the product.

is how to set the selling price From the cost of the product (Markup on Cost), this method is used by many people and is popular as well. We have to calculate the cost of the product per piece first, such as the cost of raw materials, labor costs, production costs, transportation costs, etc. Then think about how much profit is needed and add them to the product price, for example, the cost of goods per piece can be calculated as 100 baht, wanting a profit of 40% of the cost means that the selling price must be set at 140 baht / piece

2. The principle of setting the price of the product from the market price.

is to explore the market to see if the price of a product or service is close to ours What is the average selling price? then set the selling price close to the market price without forgetting to take into account our cost This principle is suitable for pricing products that have a large number of substitutes or products that are widely available in the market.

while unique, rare, or non-substitutable products such as handmade products or products that entrepreneurs add value to their products with a unique story Even with a replacement product, but it has outstanding value that is different from other products of the same type, it can be priced higher than the market price.

3. Principles of pricing products from customers as the main

This is a method of setting the price of the product. That may be a bit complicated because it is difficult to touch is to set the price of the product by actually studying that our target customers are powerful. How much is the ability to purchase consumer goods? By studying behavior, lifestyle, needs, expectations, occupation, income, etc., in this way, we can set the selling price to truly meet the needs of customers.

It can be seen that the three principles of determining the price of goods It is not possible to choose to use only one of the pricing principles, for example, choose the principle of setting costs from costs and set a high profit or markup price, but do not look at the market price of substitutes or similar products. It may cause the price setting. sell Something went wrong causing people to buy things from other stores instead Therefore, no matter what principle of setting the selling price, It should also take into account all the factors that affect the purchase decision of the customer.

🔸 How do you set the product price?

The formula for setting the selling price or setting the selling price It is a science and art that entrepreneurs should learn. in order to be able to set the price to satisfy Attract and stand out Help create sales to skyrocket for sure. For how to set the selling price. can apply these methods

1. Set the price of products and services to be attractive.

Attractive prices influence consumers' purchasing decisions. Believe that we may have seen a technique for setting the price of a product ending in 99, such as 199 baht or 499 baht, also known as Decoy pricing, is a psychological pricing method. The goal is to attract And make customers feel that this product is not expensive and still worth it, but in fact, if adding 1 baht, for example, setting the price of 200 baht or 500 baht, customers will feel that the product is more expensive. It is the selling price based on the buyer's feelings towards the price.

2. Set the product price to be easy to calculate.

Many times the selling price Easy to calculate will help generate purchases from customers for more than one item because it reduces the complexity and time of customer calculations. Help them make purchasing decisions with us easier. This is suitable for products that customers can make a purchase decision quickly. Many items can be purchased at a time, such as personal items such as soap, shampoo, or snacks. This pricing technique may not apply to items that customers have to decide to buy for a long time. or must have already searched for information such as a computer

3. Good quality products can set a high price.

Not only must it be a good quality product. Communicating to customers to know the value and excellent quality of the product is important. If we can create stories that add value to products that stand out and are different from the same product. We will be able to set the selling price higher than the market price, for example, telling stories about the materials used in the production of the product and the meticulous methods of creating this product.

4. Set a low price to do promotions to increase sales.

Find the moment to attract the attention of customers with special promotional prices. Or you can use the same price but have free stuff. But this kind of pricing should only be created from time to time in order to allow consumers to feel special in their purchases at certain times. Importantly, there must be a clear date and time of the purchase conditions. And must publicize the customers as much as possible in order to organize the promotion as efficiently as possible.

5. Must not set the price so low that there is no profit

setting a sale price Too cheap is not always a plus. for one reason is Customers may think that our products are not of quality. And it may cause insecurity to buy products and services that use it. another one is Setting a very low selling price, leaving only a small profit. will make no gaps in the preparation of promotions to promote sales

6. Offer to pay in installments.

Suitable for products that require large sums of money to buy and are products that have a relatively long lifespan, such as TVs, refrigerators, air conditioners. mobile phone Offering a recurring payment It's better that the customer can get the product by paying in lump sums, but in smaller amounts. No need to put in large sums to buy products at once.

7. Separate the shipping price from the selling price.

Online shopping is very popular nowadays. Customers can easily compare product prices by visiting the website. By separating the shipping cost from the selling price, the customer will know the actual price of the product and compare it to a store that includes shipping in the selling price. Our products will be cheaper too.

Where does the cost come from?

When it comes to cost Many people think of cost of goods sold, such as the cost of purchasing goods, raw materials, or major costs. that makes it possible to obtain a product but in fact That cost must be carefully thought out according to the operation of the business. calculated from the total cost incurred as follows:

- Fixed costs such as rent, employee fees that must be paid each month

- variable costs such as raw materials, goods, costs resulting in acquisition of goods

- Other administrative costs such as administrative expenses, advertising costs, etc.

🔸 After getting the cost, what next?

So let's look at that. What are the things to consider after getting the cost price? Personally, I focus on the other 3 issues.

1. Tax issues Both VAT and income tax are

- Does the selling price include VAT? In the case of goods or services subject to VAT If we have to combine, can we add 7% to pass the burden on consumers?

- Profits earned must also be taxed. After selling, it is already profitable. A portion of the profits may have to be divided to pay income tax as well. How much income tax do we have? For example, what base do we pay tax on? or juristic persons, we are taxed at the rate of SMEs or the rate of 20%

2. Business strategy issues

Brand image, customer group, overview of each type of product or service available Including the purpose of this product for sale (e.g. selling to promote another product)

3. Competitive Issues

Is this pricing competitive? which is not looking at the price competition alone But have to look in terms of value compared to the price that customers receive. (From the customer groups that we define) to additional marketing prices on various issues such as having a sales representative Bulk purchase discounts Setting the price must allow for discounts in some cases, etc.

-------------------------------------------------------------------------------------

Details of online marketing services

>> https://www.chatstickmarket.com/langran

Examples of various brands that we take care of online marketing

>>https://www.chatstickmarket.com/portfolio

---------------------------------------------------------------------------------------

💙 Consult our team 💙

📱Tel : 0840104252 📱0947805680

Office Hotline : 034-900-165 , 02-297-0811 (Monday-Friday)

📨 Inbox : http://m.me/ChatStick.TH

┏━━━━━━━━━┓

📲 LINE: @chatstick