Product Pricing

[zyklone]

Hi Guys,

I wanted to open a shoe business. I found a wholesale store that sells less cost. It is sold $6. What is the right pricing of this product? what are the things i need to consider in order for me to come up with a right price.

Thanks for the help!

[Anca]

First, you have to cover your costs, but you also have to check your competitors, especially those located in your area. Compare the products and you will find the appropriate price.

Good luck with your business

[rpermana]

check price instantly at ebay.

[inle]

are we talkin about princing strategies?
there are various methods..

there is the cost based method:
that is adding a mark up to your cost(including all the costs, from manufacturing, inventories, marketing) as profits..
it might be as a fixed price to certain product or a percentage..

there is the market based pricing:
that is depending on the supply/demand of the market..
& the price elasities & sensitives of your offerings..
also check on the compeitior's pricings as a guide..

there is a value/benefit based pricing:
it will depends on your offerings' uniqueness & its selling price & its benefits & appeals to your target market..
you can charge a premium if you hit the right spot..

there is the product life cycle pricing strategy:
depending on which stage your offering is, you charge differently..
it could be the entry level, acceptance level, matured level or the decline level..
all will be needed to price differently depending on the market response & the age of your product..

there is the COMBINE ALL of the above method:
which is the sum of every/some aspects of the above methods..

[zyklone]

i'm really hard pricing my product. can you give me an real world example on how to do it? i want to resell a shoes from a wholesaler. thanks for the help.

[inle]

i'm really hard pricing my product. can you give me an real world example on how to do it? i want to resell a shoes from a wholesaler. thanks for the help.

I give you an example of a benefit/value based pricing product..

you know of branded bags like Hermes, LVs etc?
They are selling the concept of luxury items that gives the value of class, prestige & social status & recognition of abundance & successful..
These brands are UNIQUE because they can bring out such values to the consumers..
People get them to LOOK good & to FEEL good..
All these are PERCIEVED but it will be REAL to them..

These brands are marketed & positioned in this way..
That's why these bags are sold at a percieved benefit & value, & therefore are sold at a premium rate..

regarding your products, I am unsure what & how you are intend to sell(as a commondity or a benefit/value or at entry level or maturing level & how you intend to market & position at)..
can I have a look at your product or any plans or product design so that I can know where to look at?

I will love to help you out..

[zyklone]

I give you an example of a benefit/value based pricing product..

you know of branded bags like Hermes, LVs etc?
They are selling the concept of luxury items that gives the value of class, prestige & social status & recognition of abundance & successful..
These brands are UNIQUE because they can bring out such values to the consumers..
People get them to LOOK good & to FEEL good..
All these are PERCIEVED but it will be REAL to them..

These brands are marketed & positioned in this way..
That's why these bags are sold at a percieved benefit & value, & therefore are sold at a premium rate..

regarding your products, I am unsure what & how you are intend to sell(as a commondity or a benefit/value or at entry level or maturing level & how you intend to market & position at)..
can I have a look at your product or any plans or product design so that I can know where to look at?

I will love to help you out..

Thanks for the help. Here are my business plan and pricing:

Hi Inle,

I'm the one who asked for help about pricing. I'm very glad you are willing to help me putting up a business.

Here are my business plan (not yet finished) and pricing.

(download it here)
slickpoint.com/bplan/business_plan.doc
slickpoint.com/bplan/pricing.doc

Thanks for the help!!!