How Much Should I Sale My Business: The Ultimate Guide
It’s the ultimate thing that can win your customers’ hearts. But products that besides certainly will not be purchased by customers if the sale price also does not fit in their pockets. it will not be easy of course for you in determining the selling price of a product it is needed its own ingenuity.
Why is that? because if you raise the price then the customer is worried about going away and no longer want to buy your product. on the other hand If you lower the price then most likely the profit will be reduced and if it is so then there is no need for you to do anything anymore.
The good news is that some strategies you can implement to be able to determine the price of the product appropriately. so this way there is no need for you to guess the price of the product without then there is basic information that is less clear.
You can change the mindset of looking for existing advantages
Of course as a business person everyone including you in this case so want to profit. This is certainly a fairness but don’t let it be for that reason you put up prices that tend to be higher. It should be noted that when determining the price of a proper product then the supporting element needs to look at the positioning of its business in marketing strategy.
The midpoint needs to be found between the purchasing power of your target customers and the competition to be able to face competitors. that’s where you can then determine the right product price and stay to profit.
Based on your needs then you can determine the price
For the management of a business then you need to know the costs that there will have to be incur. if indeed the price of the product does not cover the financing thereby the effect will negatively impact the cash flow condition of your company. Therefore when the cost of business expenses has been determined you should not forget also to include the cost for property, inventory, installment payments up to the employee’s salary.
It is not known that there are four ways that you can apply to be able to determine the price of the product precisely as follows
You need to know if it’s indeed a way used by business people, especially for those who are engaged in manufacturing, as for what you have to do when you want to determine the price of the product by using this way is to calculate in advance the amount of production cost, in addition also added with the value of profit you want or commonly called margin. the formula is as follows.
Sale price = capital (production cost) + profit
For example If you have a business in fashion, engaged in the sale of women’s clothing for example. usually the resulting production is ideally 10 women’s clothing where you will spend Rp1.000.000 for the purchase of raw materials and Rp2,000,000 for operational costs. operating expenses as well as employee salaries, electricity and so on. so you spend Al a total cost of Rp3,000,000. of course, you can get profit from this production by 20%. then one of your women’s clothing will have a sale price of sale price of 10 garments
Rp3.000.000 + (20%x Rp3.000.000) = rp3.600.000
The selling price of one garment is estimated: rp3.600.000 : 10 = rp360.000
Demand pricing itself will ideally then be determined through the optimal combination of your advantages as well as the number of products available. Businesses that then use this artist-based method will generally sell products in various ways and in different prices as well as retailers, wholesalers, or direct Mail marketers.
For example, wholesalers tend to buy more products than tasters so that the purchases that will be made will be at a lower price. But this demand-based pricing method requires a fairly high flying hours to be mastered. This is because you need to do the calculations in advance precisely with the amount of price that is arguably able to produce the optimal relationship that comes from the profit and the number of products available.
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Usually indeed the method of pricing based on this competitive is used when the product market has a price that tends to remain. as my example when you sell toddler milk products. Your competitors are priced at Rp30,000 for one pack of toddler milk only. it’s also a good idea to put that price on your product. usually indeed the application of this competitive method is when the products on the market are difficult to distinguish from each other. If there is a market leader, in which there is a brand that leads sales then in general he will determine the price of the product. so companies that have smaller scales will follow later.
So indeed for you to be able to apply this method in the pricing of the necessary products is to know in advance about the price of the product that has already been installed by the competitor. If there is a want to put up a product price that has a higher price than most competitors make sure in advance that there has something that can be an advantage of the product that you offer such as you provide consumer service for 24 hours or also the policy that your product can be exchanged.
In general, the use of this method is carried out by businesses engaged in manufacturing, retailers, and wholesalers. This event is used to add a certain amount or percentage that is found in the cost of a product that will be generated for the customer. for example, when making a product you only need Rp100.000 and then sell it for rp125.000 then the value of the mark-up is Rp25,000. to calculate the percentage of the markup, you need to share the markup value with the cost of creating a product such as Rp25,000 divided by Rp100,000 which is 25%.
You can pay attention to market conditions
The thing that is so important for you should also pay attention is the market conditions to be able to determine the price of the product. here you should know in a meeting whether the target customer is able and willing to pay the product according to the price you want. therefore it is important that you have a clear target customer in this case.
This is because in different social classes, the target customers will have different characteristics. So here must be ensured in advance that your product does have a specific target customer so that later the price of the product can then be determined appropriately.