rices. They feel that in order to get the maximum number of sales they can only have a minimum markup.

But this is not necessarily true. Studies have shown that businesses that offer the lowest prices do not always achieve the highest sales volume because there are many other factors involved in a buying decision.

So what’s the first step in setting the right price for your produc

If you sell products or services, you probably grapple every day with one of the most challenging issues faced by business owners worldwide: How much should I charge? This is often the major factor in business that makes every other factor pale in comparison. If you price your product or service “right,” you will pave a golden path to your own success and leave your competitors far behind.

Price is the index that most customers use as perceived value. Some customers are comparison shoppers always looking for the lowest prices and will buy wherever they are able to get the lowest price. Some customers are not looking for the lowest prices but are looking for other benefits. While other customers are actually attracted to the highest prices, as they perceive a higher price to mean higher quality and exclusivity. Finally, there are customers who rarely do shopping based on price, but rather, rely on recommendations from friends, television commercials, or they look for “special sales.”

Whichever type of customer you’re dealing with price is always a consideration, which makes price-setting often the most difficult matter for the business owner to address. As a business owner you not only want to maximize sales, but you also want to turn the maximum profit on sales as well. This is why business owners always feel that they have to make a choice between great sales volume at small markup and less volume at a higher markup.

Because of today’s global competition many business owners operate under the premise that they have to sell at bargain prices. They feel that in order to get the maximum number of sales they can only have a minimum markup.

But this is not necessarily true. Studies have shown that businesses that offer the lowest prices do not always achieve the highest sales volume because there are many other factors involved in a buying decision.

So what’s the first step in setting the right price for your product

>

Price is the index that most customers use as perceived value. Some customers are comparison shoppers always looking for the lowest prices and will buy wherever they are able to get the lowest price. Some customers are not looking for the lowest prices but are looking for other benefits. While other customers are actually attracted to the highest prices, as they perceive a higher price to mean higher quality and exclusivity. Finally, there are customers who rarely do shopping based on price, but rather, rely on recommendations from friends, television commercials, or they look for “special sales.”

Whichever type of customer you’re dealing with price is always a consideration, which makes price-setting often the most difficult matter for the business owner to address. As a business owner you not only want to maximize sales, but you also want to turn the maximum profit on sales as well. This is why business owners always feel that they have to make a choice between great sales volume at small markup and less volume at a higher markup.

Because of today’s global competition many business owners operate under the premise that they have to sell at bargain prices. They feel that in order to get the maximum number of sales they can only have a minimum markup.

But this is not necessarily true. Studies have shown that businesses that offer the lowest prices do not always achieve the highest sales volume because there are many other factors involved in a buying decision.

So what’s the first step in setting the right price for your produc

mean higher quality and exclusivity. Finally, there are customers who rarely do shopping based on price, but rather, rely on recommendations from friends, television commercials, or they look for “special sales.”

Whichever type of customer you’re dealing with price is always a consideration, which makes price-setting often the most difficult matter for the business owner to address. As a business owner you not only want to maximize sales, but you also want to turn the maximum profit on sales as well. This is why business owners always feel that they have to make a choice between great sales volume at small markup and less volume at a higher markup.

Because of today’s global competition many business owners operate under the premise that they have to sell at bargain prices. They feel that in order to get the maximum number of sales they can only have a minimum markup.

But this is not necessarily true. Studies have shown that businesses that offer the lowest prices do not always achieve the highest sales volume because there are many other factors involved in a buying decision.

So what’s the first step in setting the right price for your produc

a business owner you not only want to maximize sales, but you also want to turn the maximum profit on sales as well. This is why business owners always feel that they have to make a choice between great sales volume at small markup and less volume at a higher markup.

Because of today’s global competition many business owners operate under the premise that they have to sell at bargain prices. They feel that in order to get the maximum number of sales they can only have a minimum markup.

But this is not necessarily true. Studies have shown that businesses that offer the lowest prices do not always achieve the highest sales volume because there are many other factors involved in a buying decision.

So what’s the first step in setting the right price for your produc

rices. They feel that in order to get the maximum number of sales they can only have a minimum markup.

But this is not necessarily true. Studies have shown that businesses that offer the lowest prices do not always achieve the highest sales volume because there are many other factors involved in a buying decision.

So what’s the first step in setting the right price for your product or service? The first step is to know exactly what type of product or service you are offering. Are you offering people a price-shopped product or service, or one that is results-shopped. The distinction is critical. Price-shopped items are essentially commodities, things, such as the items you’d find at a grocery store. People buy things wherever they find the lowest price.

A results-shopped item is totally different. If your customers are looking for a particular result, a certain sense of fulfillment or inner satisfaction, then you as a business owner have much more flexibility, and a better chance to make a nice profit when setting your prices.

You should always try to move your business toward the “results-shopper business category and away from the price-shopper category. But sometimes you are at least temporarily trapped in the commodity pricing structure. If you must price low, then it is to your advantage to price even lower than your competition, but when you do this make your low price contingent upon the customer buying some other product or service, or some combination of services or products, that have small profit margins.

With pricing you always need to remember that you might have to be a commodity in the first part of a transaction, but not beyond that point. For example if you offer a product that is heavily price shopped, then offer a bigger package. Refuse to compete on a commodity basis. If your competition is selling an item at a certain low price, then don’t sell that item alone. Instead package several of them