Things to Consider When Pricing Products

Some days ago while surfing I find an interesting stratagy about pricing a product or factors which are involved with it are as follows.

1-What is business selling: it states that a business should know about the value of their product. If they set the price of a product lower as compared to their competitors then their product will be perceived thier customers too low in quality. But If they will set a price of thier product higher as compared to thier competitors , then the competitors will take away your those customers who feel that product is over priced.

2- knowledge about target customers: mean you should be clear about your target customers, which shops they visits, what they are looking or, how much they spend on them.. It will help you a lot about setting a standered price.

3- What competitor is doing: the proprietor should know about what price is charged by the competitor. And what the customers get in returns in term of value of their spending of money.

4- knowledge about economy situation: A businessman should be clear about the current economy of the country. Whether there is inflation or deflation. What are the earnings of the people. This knowledge will help him a lot to understand whether he should incresae te price or cut it down.

Openion:
In my openion setting a price of product required a bit of struggle together informations, But it protect your product from wasting. And these points are excellent toward reasonably pricing of a product to increase ur sales and attracting more customers. Because if ur prices will be reasonable then there are ample chances that the customers will turn towards ur products as compared to your competitors.

Reference:
merchendise-management.suite101.com/articals.cfm/things_to_consider_when_pricing_product