How to put price when you sell a product

plasmablutte12 Level 1

August 27, 2017, 5:33 am

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How to put price when you sell a product

Give me some sort of idea how to sell in best price

I have a question for everyone regarding to this topic. I have small business but charging price was my problem. What should I do? Should i charge more than 50% or just 20%. I just wanted to have products with reasonable price. My products was related to computer, sometimes I did resell products that my brother manufactured from our local businesses.
I will try all your suggestions, if ever you put the best advise, so I could five bonus to my clients and customers.

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jayken

jayken

First, you should consider the capability of the items. You can also check some other sites to compare your item and you could get some idea about the price of your items. You should also consider if it's second hand you can put a 30 to 40% percent discount.

7 years ago

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DarthHazard

DarthHazard

Depending on the item and how good it has been taken care of, you will probably have to put a much higher percent discount. People are really picky about buying certain second-hand items so you will have to put something like a 60-70% discount on the price you bought it at if you actually want it to sell. Like you suggested, it's best to check other sites to see what the prices are like for what you are selling.

7 years ago

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plasmablutte12

plasmablutte12

Wow thanks jayken, I didn't consider such things. All I thought was to sell products, but
to compare with the other sites; I never such thing. I research about
the proper marketing of my products, sometimes it would not match to the
customers wants. I want them to buy the products. Most of my item are
not second-hand, but hand-made products.

I have these items in my inventory some of them don't sold at all. here are the list;

local wallet - the design was anime, dota characters.
dress and clothes - its made from pineapple thread.
small bracelet - it has different design
soap - common to all but the flavor was avocado
phones - some were second-hand

Maybe the phone should have a discount, however some of the buyers wanted the lowest price that I couldn't have profit anymore.

7 years ago

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ballyhara

ballyhara

I think you need to check the general price for that item, make a search and find out what's the average price for it, price will vary depending if it is new, used, refurbished. Also, your price will go up if you are doing some improvements to it, so in this case, you will have to add a percentage depending on the investment you made, to get this product to be better. Basically, you have to see an earning, based on how much it costs you to develop the product, and that earning must have give you the chance to do a new investment.

7 years ago

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wilkan80

wilkan80

Personally, I find out if there is a similar product in the market and the price they offer. Then I factor in my cost and any other related taxes on the product and ensure I can match their price or make my price fairer. Finally, I put my markup which is usually from 20% and above. If it's a fast moving product I will consider putting my profit under the 20% since the cost of long storage will not be factored in considering the ROI is higher.

7 years ago

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Barida

Barida

This is a good way to set prices for new products that we bring into the market. Understanding what others charge can be a good way to remain competitive in the market.

7 years ago

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Patrickdim

Patrickdim

For me the question will always be on the product you are selling first you need to know the condition of it, you can sell the product in high value if it is in mint condition, no issue from boxing until the product inside. You can give some freebies on it for example you are selling printer so you can give a freebies like paper sheet, extra ink, usb or memory card just remember freebies always count as a small amount in your product you are selling . You can also use discount method for example they will buy to product so you need to give them 20 to 40 percent discount, or if the seller have a business involve the product you are selling just give discount on it so that you can get a good satisfaction on selling

7 years ago

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Barida

Barida

No matter what decision you're taking, I suggest you run a pilot survey on it to test if that is really working. running a pilot survey will give you an idea of how the consumers react to every decision you have taken.

Also, look out for what other rivals are doing and how they are drawing in those customers and try to tweak and improve on it.

7 years ago

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augusta

augusta

I was taught a selling price is gotten from adding cost of raw materials, labor and other sundry expenses to know the exact money spend to manufactured,then you add a little amount to the price of the manufactured price so as to get your profit and selling the product

So basically,it about adding extra amount to your cost or manufactured price to get your selling price and in turn make a profit

7 years ago

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DarthHazard

DarthHazard

It all depends on the product that you are trying to sell. The first thing that you should do is to figure out what the costs are. You need to calculate the cost of buying/producing your products, costs for advertising and other overhead costs. And once you do that, it is easier to figure out what price you should set up to sell the product. Don't try to put a massive price on the product because it is not always easy to sell an expensive product

7 years ago

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Tronia

Tronia

If I was you, I would be setting my price depending on my competitors. You have to be around their price range because if you're too expensive, nobody will buy from you. So do research on your competition to get some approximate prices on several items then calculate your own production costs in there - that's how you should be setting your price. However, you can always give some discounts and so on, to initially attract customers.

7 years ago

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overcast

overcast

I think most of the people usually price product based on - competitors price, hours spent to build the product, promotion, social media, product in demand, saturation in niche. Those seem to be the parameters that make the product selling lot easier. That's how I'd be doing the product promotion if you ask me. I'd look for the ways through which the product can be sold. I'd look for the social media and demand from the social options. I think if you do this type of the profit loss analysis you get to sell the product this way.

7 years ago

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AlexJPro

AlexJPro

Well, try to look up for the local price, then the international price and then sell it where you're more comfortable.

Also, try to add a discount, not too big but add it.
Secondly, look up for competitors as they're products can be cheaper.

7 years ago

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saygorem

saygorem

I think pricing your products should be resonable, and if its not anymore in trend maybe you should give discounts, maybe 5% off at least so that buyers will notice it. Give them buy one take one offers, sell items in package or wholesale and the pricing is less. Many will surely notice your products.

7 years ago

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fulstaf

fulstaf

After comparing other businesses prices, you should calculate the distance, and all the expenses your competitors are not paying, how much you are saving for your customer if he buys from you, and add your salary plus a little extra.

7 years ago

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Patrickdim

Patrickdim

Always depends on the produc if it perfect condition then it deserve to have a high price

7 years ago

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tinethoughts

tinethoughts

If you are a start up entrepreneur, one thing that you have to do is make references out of your competitors. Make them a benchmark for your pricing and even marketing. Once you have established your benchmarks, you have to focus on your item and do a specific checklist such as the quality of your items, will there be enough suppliers to supply my store needs? What are my possible expenses? In making business you can only offer quality products to your consumers and don't be afraid to receive a lot of feedback.

7 years ago

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lerryrian

lerryrian

If you start to a buy and sell business, you need to know your product, what are you selling and where your products manufactured.You must sell your products to the people who needs its,not just to sell only your product.Give a discount or make a promo, atleast in that way your customer will be attracted to buy.To make a big profit you need to buy ypur product with discount or you need to buy bulk of items.

7 years ago

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JoyC

JoyC

I understand that running a business is not an easy task and you are solely responsible for everything so you want to ensure that you are getting your money's worth. I use the internet as a tool in every facet of my life and daily routine. I would use several search engines and browse the internet to compare the price of competitors of your product to gauge the differences. I would review the specifications, shipping and delivery costs, warranty, etc. so that you can get a good understanding of what you are really offering your customers. This will let you know what you need to work on from marketing up to the appearance of the product. I hope this helps with determining the price for your product.

7 years ago

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peachpurple

peachpurple

Compare the computer parts from other websites and the offline shops ( the shops that sells them in your area ). Your customers would not buy anything that is more than the market price. SO, you need to check on your cost price, transport fee, any extra charges, your profit margin, roughly 20% for smaller items, 40% for bigger items.

7 years ago

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PedroP

PedroP

That^^
If you want to charge more you got to make sure that you offer something different to your client. Not only That you have to make SURE your client knows why he's paying more for an item. Maybe you'll send them a bonus gift with their purchase or you'll make sure that the transportation has no extra fee for the customer.

7 years ago

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pizzalover

pizzalover

You need to organize you and write how much had you paid for that product, the shipping, the delivery, warranty, etc of that product. It is not an easy task but depending on the amount you calculated you are going to estimate your profits and that way you are going to be successful on your business. It is a lot that you need to study but it is worth it.

7 years ago

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Authord

Authord

Well, i suggest you use the keystone pricing, it's a type of pricing when a retailer would simply double the wholesale cost they paid for the product to determine the price ,If you have products that have a slow inventory turnover, have substantial shipping and handling costs, and are unique and scarce in some sense then you might be selling yourself short with keystone pricing and could possibly get away with an even higher markup. But, if your products are highly commoditized and easily available elsewhere, using keystone pricing can be harder to pull off.

7 years ago

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ryyde

ryyde

Base your price on the product's demand in the market and especially by its quality. Check the products original price before reselling it. Most of today's buyers seek for cheap prices without minding the quality of the product that they bought. It is important to consider some criteria in able to benefit from it.

7 years ago

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MarkJ94

MarkJ94

Based on what I have learned from my past lessons in college hahaha. Cost + Profit Margin or You can compare prices in the web so that you will have an idea what is the price range of a certain products and for you to be competitive in some way like selling it lower than others "competitive advantage".

7 years ago

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tophew

tophew

my advice for it is try to monitor the price from other sellers and try to compete with there prices so that you can have a greater sale than the others like if the other offers 10 percent discount you can go for 12 percent discount so that many buyers will more attract with your sale price.

7 years ago

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BelindaMT

BelindaMT

Well first you did not state if your business is online or you're renting a place. Lets say you are renting a place, I think before pricing your items, you should consider the expenses like rental expense, labor expense, electric bill, internet bill or phone bill, etc. because if you price very low maybe it will not cover your expense worst is you cannot get your capital back. Remember you are also paying business permit and taxes. Consider these things when you are making a price. The idea of 50% mark up price is acceptable since it not the necessity needs of most people. Now, if your business is online, you have to check the price of other dealer so you know how to compete with them. Since sometime you are re-selling items well of course you have to mark-up the price atleast by 10%

7 years ago

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Judas2018

Judas2018

It really depends on what you're selling. If you're selling digital goods (tweets, facebook posts), usually your price should not be above $3 or $5. However it also depends on how powerful your social media universe is. Some tweets or facebook posts can go for as much as $25.00 depending on the amount or weight of followers. If you're selling a physical product then you should factor work, time restraints, and shipping cost into your prices. Also anything that's brand new that you're selling should go for market value as it is fresh and untouched. Used or repaired items always go for less.

7 years ago

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vinaya

vinaya

I think adding 25 percent to your manufacturing/procurement cost (including promotional cost) will be a good price for your product. However, before pricing, you should also compare to similar products. If your product cost more than the same product in the market, you will have to lower your selling price, if possible your price should always be lesser than the similar product in the market. If your product is priced less, you will earn less, but you are likely to make volume sales which ultimately earn you money.

7 years ago

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justin223

justin223

My mother has store. She has a lot of products to sell, so she more profit. When she sell a product she charge 10% of the real price of the product. I think you must have more products to sell to have more profit and to earn more money.

7 years ago

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pandooh

pandooh

You must know the real cost of your product:from materials to your finished goods then that's the time you'll be able to put a mark-up on your product. That depends on you how much you would charge as long as you'll be able to cover your expenses, too. One best thing is also doing a benchmark. When you have an advantage you may have a higher price than your competitors. Always know your strength and weaknesses, too.

7 years ago

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Xyruz13

Xyruz13

You need to know your market and how much your competition is selling the same product. You need to make sure that you don't make your product too expensive or else no one would buy it. Having a low price is not enough to sell. You have to advertise. Social media is a great way to advertise. You also need to make sure that what you're selling is worth paying for so that the people who purchase your product and are satisfied will tell their friends about it and advertise it in the process.

7 years ago

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Rybert21

Rybert21

First you have to consider what was your customer situation, or income, you have to consider your market, making a price is tricky, it must be competitive price to the other stores, it must have a uniqueness to it. For example if you buy a parts of this for 3 i will give you a 15% discount on your next buy.

You have to be smart in order to get your customer come to you and build a relations between you and the customer, just always keep. Your business accommodated to your consumer.

7 years ago

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gilaraymark

gilaraymark

No matter what type of product you sell, the price you charge your customers or clients will have a direct effect on the success of your business. Though pricing strategies can be complex, the basic rules of pricing are straightforward:
All prices must cover costs and profits.The most effective way to lower prices is to lower costs.Review prices frequently to assure that they reflect the dynamics of cost, market demand, response to the competition, and profit objectives.Prices must be established to assure sales.
Before setting a price for your product, you have to know the costs of running your business. If the price for your product or service doesn't cover costs, your cash flow will be cumulatively negative, you'll exhaust your financial resources, and your business will ultimately fail. To determine how much it costs to run your business, include property and/or equipment leases, loan repayments, inventory, utilities, financing costs, and salaries/wages/commissions. Don't forget to add the costs of markdowns, shortages, damaged merchandise, employee discounts, cost of goods sold, and desired profits to your list of operating expenses.
Most important is to add profit in your calculation of costs. Treat profit as a fixed cost, like a loan payment or payroll, since none of us is in business to break even.

7 years ago

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grs2017

grs2017

When setting your price for your goods you will need to do some pricing research, find out the market price for the product. Consider how much it cost you to purchase or make it and much it will cost you to get to your buyer and compare all of that with how much you want to make as profit.

7 years ago

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chelfox18

chelfox18

There are many things to consider in giving a selling price to a product. QUALITY of a product is best to consider first. If your product is good in terms of quality, you can't be scared in giving high prices to your product. Most customer buy stuffs even if it is so expensive as long as the quality is good. They choose to pay a lot as long as they feel its worth it, because they know it would last. QUANTITY also is important in pricing, if your product is not selling and you have more stocks left. You can try to lower the prices a bit , to gain sales from that product. You can research also about the pricing of the products of your competitor, so you can have idea what product should you price higher or lower.

7 years ago

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joshuaxeon

joshuaxeon

First look at the appearances, dents, scratches and broken sides would lower the selling price. But mainly what theyre looking for is the performance, how the item works and how will this help. You lessen your work and your problems. You cant even sell a item on its original price evem though you didnt used it before. And finding a customer is very hard when you want to sell your item fast as the price you want.

7 years ago

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Vastor122

Vastor122

You can search a lot of things to consider to come up with the right one, there are a lot of tips in making sure that you are putting a reasonable price while selling or reselling a product. You can do comparisons between same products and start from there. After all, the prices will vary to the quality of what you are selling.

7 years ago

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gelotologist

gelotologist

First you need to check or search the internet to check and compare your items so u can have an idea. Also, check the durability and sometimes the scratches which can be deducted to your pricing of items. When I tend to sell items what I would do first Is I check the internet, so I can tell if I did overprice my item. I also list where did I get the items and if its already used.

7 years ago

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naknakdatu

naknakdatu

I've always wanted to learn on how to sell products online and how to earn fast. Also how to advertise them. Where do I start? And how I'm gonna do it. What are the modules or things that you will need except for the product? Is there a step by step tutorial for this?

7 years ago

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vinaya

vinaya

How much you should charge for your product depends on how much you have paid to manufacture the product or procure the product. Your price should also include your promotion cost. Normally, setting 20 percent profit margin should be considered a good practice.
In if your product is something like a book you wrote or a logo you designed, your cost should include the time you spent on doing that book or logo. More time spent means setting a higher price.

7 years ago

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preciseone

preciseone

I think that the first thing you should do is find out how much the product is going for in the market. After that see how much you can purchase it for and how much you can profit from it. You will also need to research the product and find out if it is in demand at this time. if you do this you can successfully sell your product. but you should make sure that your price is competitive in the market.

7 years ago

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Mida

Mida

Try finding out the price other businesses are charging for similar products. Then you can try lowering the price of the products for a period of time to attract customers and to also make many people aware of your shop. You will have to slightly increase the price of your products over a period of time because there will be more people aware of your shop who will likely come to shop there regularly.

7 years ago

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SirenOnFire

SirenOnFire

I have never sold anything online before, but I am a frequent buyer and customer and that is the kind of point of view I can share to you. Whenever I want to buy something, I always check other stores who sell this same product and compare their prices. Another is the freebies you can get from different stores or the discounts you get after reaching specific amount. Moreover, it's best too to compare the quality of the product you sell compare to you other competitors. If you're prices are a little higher compared to them, what can you offer to buyers that would convince them to choose you over others, is the next thing you should think about.

7 years ago

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jaymish

jaymish

At first, i would say, sell it for the cheapest price, you can, after you cover your cost of production plus a little profit. The reason why I say this is that the world as a whole is facing hard economic times. For that reason, most people would consider the price to be the determining factor, of whether they buy the product or not. I would as suggested in previous posts look for the price of other similar products then set mine a little cheaper. I hope also that your product is good if it is good you will be able to build a client base, which is hooked on your product. If you do this you will be able to charge what you want, and clients will follow you. Look at companies like Apple. Users of the iPhone say once you use it, you become addicted to it and you can never, use another phone again, no matter how high the price goes.

7 years ago

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wallet

wallet

This depends on what you are selling, how much investment you made in your business and how long you are in the branch. I would say that you can consider 30 -40% but you must set a price that really fits to what you are selling, so if 30% seems too much you may decrease in time!

7 years ago

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Krisleen

Krisleen

I usually do my research before pricing my items. I gather information about the prices of my competitors, both online and offline. I also consider the price I get from my supplier or the materials I am about to use if I will be the one producing the product. And lastly, I compute for my expenses. That's the time I do pricing. Considering these factors, you can decide the mark up you can put in your items.

7 years ago

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AmieBotella

AmieBotella

In pricing goods, it is ideal to study each items you are about to sell. First of, you said your product/item for sale is related to computers. Therefore, they are perishable. First of, look for similar or same items sold online and available at the market. Next, try to see or study the demand of this particular product. Now, note down how much did you spend on purchasing this item including all the shipping (if applicable) and hidden costs you might've spent upon purchase. Write it all down. For example, you will be selling a noise cancelling headset with microphone and you purchased it for $25. Assuming that there's a $100 shipping fee for 75 pieces of headset, divide this to the number of items purchased, giving you $1.33 per item. Compute all the additional amount. If let's say you come up with $45 for this item, and the others sell the same brand for $90, then either you level with their price or go a little bit lower than theirs. Remember it is also essential to just go with the market price so that you and your fellow sellers can profit good and at the same time maintain the standard selling price. Never go too low to have the competition flowing healthily. Hope this helps.

7 years ago

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Pixie06

Pixie06

I have a small business and it is not that easy to set the price to sell my products. The first thing that I usually do is calculate the cost per unit of my product. I then try to find out the prices my competitors are charging. I always try my best to minimize my costs so that I can sell at a lower price and maximize my profits.

7 years ago

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Corzhens

Corzhens

My experience in selling tells me that you are on the wrong track when you are estimating the cost by the numbers like adding a mark up of 50% or 20%. You have to make a market study on the prevailing prices of the same product that you are selling. From the average price of 3 products in the market you can then make your estimate for the prices of your products.

6 years ago

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