After successfully launching a product or service that we created, this is the most eagerly awaited moment by all business people and entrepreneurs. Is that? Determine the price structure of the products we sell. All products created act as a solution to the problems faced by employees. Simultaneously, the products we sell are also for the benefit of the business we founded.
Determining product prices is very important because this will determine the amount of income from our business income and prepare for the success of our business in the future . Well, in this article we will share 6 ways to determine the right product selling price for Career Advice colleagues, which we have summarized from the allbusiness website. Let us consider the following explanation.
1. Revisiting Our Target Customers.
Products and services launched from our business are to be bought, used or consumed by customers. Therefore, reviewing our target customers is very important, because the people who will buy our products are them.
In addition, we also need to review related features, prices and types of products that we launch. Is all of that still relevant to our target customers in the beginning? Thinking about this is very important, you know, Career Advice. As we know that the business world always offers changes from time to time very quickly. So, don’t forget to review our target customers before, determine the right product selling price.
2. Set a Standard Price, Give the First Service and Build a Price Structure Slowly.
To understand market demand, we must do some research to determine what products or services we will launch in the world market. However, after our goods and services have been successfully launched, we also need to research again. Is the standard price that we set already OK on the market?
In this case, we can start by selling the product to one client who needs our product. In fact, we can also provide discounts so that other potential customers are also interested in trying it. Each prospective customer will certainly choose one product from the package offer that we display.
The more potential customers try our products, the more feedback we get. That way, it will be easier for us to know what qualities we need to improve, and what excellence we need to maintain. This process will facilitate us in determining, “whether we will continue to use the initial standard price or increase the price of our products?”.
3. Evaluating Movements of Competitors.
However, the products and services that we create will certainly invite the presence of competitors. Either the competitors were present before our product launch, or the competitors appeared after our products entered the market.
For competitors who have existed before the presence of our products, it’s good to evaluate their movements until now. For example, what is the price of the product that competitors are setting, how is the quality of the product being offered, what is it that makes customers fall in love with their products? and so forth.
What about new products that emerge from competitors when our products appear on the market? Maybe they started launching the same product because they were interested in the innovation and business concepts we have.
In this case, we need to review the movements of competitors. For example, evaluating more deeply about “whether customers will find it difficult to differentiate our products from competitors because they are too similar?”
Through reviews like this, it will be easier for us to determine the right product selling price. If the price of our products is more expensive than competitors’ products, we can be sure that the quality of the products we have is better than what they have.
4. There Is Price, There Is Quality.
To determine whether we will still use the price of the product at the beginning or should we increase the initial price of the product, we can focus on the results that are given from the product. It is important for us to always communicate with customers who have used our products, especially loyal customers who have already praised the quality of the product.
There is nothing wrong if we consider raising prices, if the level of customer satisfaction is indeed increasing. As demand and credibility of our products increase, the price of the product also needs to increase.
5. Calculate the Cost Analysis of Our Product Supply or Request.
Now, we enter the calculation section this time. Before we determine the selling price of a product, it is very important for business people to know:
– How much have been spent in producing a product or a service to customers?
– How much do we spend to pay employees?
After knowing these costs, try to find out again about:
– What is the selling price of the products installed by competitors. For this section, we can make a comparison table and outline the advantages and disadvantages of each product. The goal is that we can see the quality of what they have, but we do not have, and vice versa.
– Think about it too, what value or quality do we offer to customers through this product?
All of the questions above can be taken into consideration for us to determine the right selling price of the product, where the price is relevant to the quality of the products we provide in each product.
6. Establish ROI (Return on Investment).
ROI or Return on Investment in Indonesian is profit or investment . Well, this ROI is the ratio of money earned or lost on an investment, and this is relative to the amount of money that has been invested.
In essence, we need to consider the value of the investment we have already spent and set the selling price of products that can provide the same or more ROI. In other words, we must get a return on capital from the sale of products with a minimum amount of money that we spend on making these products.