Useful tips to price a product

Re: Useful tips to price a product

Sometimes your competitors won't mark their wholesale products up 100-percent so you'll need to be price competitive and at least stay in the midrange. This can be profitable though if there is enough profit (total dollars and not percentage).

Re: Useful tips to price a product

Hello Friends

After the product is received by the customer and depending on the payment terms it may be another 30 days or more before payment. And the payment check may be cut on the 30th day and mailed which adds another 5-9 days to the delivery time. Then when the check is cashed the bank might add another 5 days to clear the check and post the payment to the account.The lag between when the inventory expense is occurred and revenue is received from that inventory can prevent the ordering of more inventory. What usually happens is that sales take off but the inventor or entrepreneur cannot purchase more inventories to fuel the growth. Since the orders are not filled in a timely manner, customers cancel their orders and sales dry up. There are ways to finance inventory such as early payment discounts, factoring, and purchase order financing but each has risks and draw backs. These methods will not be covered here.Another way the business can sink is related to manufacturing issues. One may be that the manufacturer is not set up to handle large orders. As with the inventory financing above the orders cannot be filled in a timely manner and are eventually canceled. Another problem may be quality. For a new product there will be a learning curve and if the product involves new processes and machines this learning curve can take some time. New manufacturing equipment and processes can take some time to debug. What usually happens is that a large volume of bad product is made because of quality issues have not been discovered and resolved before it is too late. In this case sales dry up because many customers receive low quality products.

Have a nice day

Re: Useful tips to price a product

thanks for the info really these are very informative tips by you..so keep on posting......

Re: Useful tips to price a product

Hello Friends.....

Great tips.Thanks for sharing.Keep sharing more useful tips in the future.

I hope this tips will help many more like me.

Thanks
Have a nice time ahead.

Re: Useful tips to price a product

Hello to all

Be concrete. Use as many specifics as possible about the products and services you ask about, especially if you’re interested in brand or item comparisons. The more general a question is, the more a customer’s mind can drift or think of categories and items you may not have anticipated. If you need to define a concept or product, do so.
Use a time frame for reference. When determining how often someone buys or uses a certain product or service, provide a time frame for them to reference.

Have a nice day

Re: Useful tips to price a product

Superb tips about Product Pricing, more tips are following:
Observe the product pricing is change from time to time.
If you are inflowing in to fresh/new product where there are no rivals, you can go for one price which you like.
Once rivals come into then you need to think about other thing that is superiority of product or service you offer, so now you can fix some other price (less or more than).

Best Regards,

Re: Useful tips to price a product

Hello
Excellent tips about Product Pricing, thanks for sharing here.

See product pricing is varies from time to time. If you are entering in to new product segment where there are no competitors, you can go for one price which you like. But once competitors enters you need to consider other thing that is quality of product or service you offer, so now you can fix some other price (less or more than competitor price).

Thanks

Re: Useful tips to price a product

1. Always mark up the price at least 100% more than what you paid for it. Your company needs to make a profit so always make sure mark up the price at a minimum of 100% more than what you paid for it. You can even mark up the price to 300% more than what you paid for it
sometimes.

2. See what your other competitors prices are for each product or service that is similar to your company. You can see how much they charge to get a general idea of what price customers are usually paying for each product. You want to have your price range for each product or service somewhere in between the price range of other competitors unless your product or service is much better than others.

3. Is your company product or service better than the other competitors? If the products are better than the others then make sure to mark up the price. You need to be able to back up your prices with reasons as to why your products are better. You need to give them reasons how your products or service will benefit them more than the competitor.

Re: Useful tips to price a product

Hello Friends

After the product is received by the customer and depending on the payment terms it may be another 30 days or more before payment. And the payment check may be cut on the 30th day and mailed which adds another 5-9 days to the delivery time. Then when the check is cashed the bank might add another 5 days to clear the check and post the payment to the account.The lag between when the inventory expense is occurred and revenue is received from that inventory can prevent the ordering of more inventory. What usually happens is that sales take off but the inventor or entrepreneur cannot purchase more inventories to fuel the growth. Since the orders are not filled in a timely manner, customers cancel their orders and sales dry up. There are ways to finance inventory such as early payment discounts, factoring, and purchase order financing but each has risks and draw backs.

Have a nice day

Re: Useful tips to price a product

These tips are really very useful. Thnaks for sharing.

Re: Useful tips to price a product

Hello

After the product is received by the customer and depending on the payment terms it may be another 30 days or more before payment. And the payment check may be cut on the 30th day and mailed which adds another 5-9 days to the delivery time. Then when the check is cashed the bank might add another 5 days to clear the check and post the payment to the account.The lag between when the inventory expense is occurred and revenue is received from that inventory can prevent the ordering of more inventory. What usually happens is that sales take off but the inventor or entrepreneur cannot purchase more inventories to fuel the growth. Since the orders are not filled in a timely manner, customers cancel their orders and sales dry up. There are ways to finance inventory such as early payment discounts, factoring, and purchase order financing but each has risks and draw backs. These methods will not be covered here.Another way the business can sink is related to manufacturing issues. One may be that the manufacturer is not set up to handle large orders. As with the inventory financing above the orders cannot be filled in a timely manner and are eventually canceled. Another problem may be quality. For a new product there will be a learning curve and if the product involves new processes and machines this learning curve can take some time. New manufacturing equipment and processes can take some time to debug. What usually happens is that a large volume of bad product is made because of quality issues have not been discovered and resolved before it is too late. In this case sales dry up because many customers receive low quality products.

Re: Useful tips to price a product

thanks for the great info by you