Sell Online And Profit.com

[Last Updated June 23rd 2009]

We think that we get to set the selling price of the products we sell. After all, these items are ours and the company belongs to us. Wrong.

In fact, there is only a small margin we can set the selling price.

The market determines the selling price of our products.

The market is based on cost and affordability of the product and the selling price of your competitors.

RULE 3: PRICING

a. Constantly check your online competitors’ selling price. Adjust your selling price if necessary.

b. If you have just started selling online, your selling price should be a little lower than the most popular competitors.

Alternatively, do it as a promotional sale at a x% discount or as an introductory selling price.

The promotion must have a clear running period (e.g. 3 months). After the promotion ends, you can sell at your regular selling price. If you feel that you want to continue the promotion, you can also do so. (e.g. “By popular demand, we are glad to extend the promotion for another 3 months” – or something to that effect.)

Remember discounts will always attract customers and is easy to do. However, removing a discount is difficult. You will fear that customers will be offended and might reduce or stop purchasing from you.

When discounts are given, it is important to be clear for:

1. Which products
2. The discount length of time
3. The Quantity
4. etc.

If you are selling a mass market product, the market is huge but there is lots of competition and margins are low. You can still make good profits by being efficient and going for volume.

If you are selling a niche market product, you can have a higher selling price, thus a higher margin, but you have a smaller market. This is also lucrative.

So you have to work harder to maintain good, long lasting relationships with your customers. This will lead to very good long term profits.

c. When products are reaching the end of  their saleability, continuously reduce your selling price for these items (even at a loss) to get rid of them before they become dead stock.

Understand and follow the above guidelines to set the right selling price.

d. Correct pricing help bring in sales!

Good Luck. from “Sell Online And Profit!”

[Last Updated June 23rd 2009]

This entry was posted on Tuesday, June 23rd, 2009 at 11:46 pm and is filed under Article. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.