In as much as making enough profit is the goal as a reseller, you cannot overlook the fact that product price plays a very significant role in determining sales. Your pricing is a deciding Factor in everything from your cash flow to your profit margins and your customers’ decisions. It’s important that you take certain things into consideration when setting your price.
First of all, consider product demand. When deciding the price of your product you might want to consider the demand rate of the said product. Considerations like whether it’s a timeless product or it’s a short-lived trending product. Various products as well as designs go in and out of style which in turn affects the demand. Your markup percentage on a product with a higher demand should definitely not be the same as one that has a lower demand.
Secondly, you have to know your customers. Aside from considering your cost, you also need to find out how much your potential customers are willing to pay. Some customers go for what they need without minding the price while others are very cautious of how much they spend, therefore a high markup can instantly discourage them. Some customers also believe a high price means high quality and the lower price means lower quality product thus, it is very important to consider your target audience while pricing the products that you are selling online.
It’s also important for you to know your competition. The fastest way to have a rough estimate of what your product pricing should be is to look closely at the competition. Are the products offered comparable to yours? Looking into this will give you a clear picture of what your pricing model should look like. You might also want to consider competitive pricing which is generally used in a very competitive market. If all your competitors are charging 100 Naira that would serve as a basis for how you price your items.
Here at Duke, we go all the way to source quality products at the best price possible because we know prices also play a major role in determining sales therefore you also have to put this into consideration while implementing your makeup. Follow the link to become part of the Duke umbrella today.