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Pricing Products(Low or High)

by Knowledgepa
4 replies
I am trying to figure the best method for pricing products. My question is: would it be more beneficial to price items lower and sell more products or to price as high as possible to gain more profit on each product. To add to the scenario, I currently have a kiosk selling these products. I buy in bulk so 1 product that I sell for $10 would cost me around $3. I also have a few employees that work at this kiosk and have to factor paying them in also I believe. Selling for low costs has definentely allowed for more sales and repeat customers. I just don't want to sell myself too short on profit. Please let me know if I am on the right track. Sell more at lower Price Vs. Selling less at higher profit???
#high #pricing #products #productslow
  • Profile picture of the author Claude Whitacre
    If you are selling an easily compared commodity, price matters. But you could probably double your net profit by adding 15% to your retail price.

    What's worth far more than pricing, is training your staff how to sell.

    You could experiment with prices to see where you make the most profit, but you wold have to do the selling yourself. If your staff keeps getting different sale prices..it will ruin them.


    One solution is to sell higher end models of whatever you are selling. That way, it's easier to justify a price increase.
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    • Profile picture of the author ewenmack
      If you sold a low ticket product at your cost
      to draw in customers, you've given yourself many more opportunities to sell
      the rest of your product line at normal or a bit higher price.

      Best,
      Ewen
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  • Profile picture of the author Knowledgepa
    Thanks for the info guys! Both answers have me thinking on how to utilize them. Another question..do you think the employees at the kiosk should get commision or hourly rate or both (with a lower hourly rate)?
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    • Profile picture of the author ewenmack
      Originally Posted by Knowledgepa View Post

      Thanks for the info guys! Both answers have me thinking on how to utilize them. Another question..do you think the employees at the kiosk should get commision or hourly rate or both (with a lower hourly rate)?
      Go with hourly so that it forces you to come up with better selling systems.

      This means you become less dependant on staff to
      make the sales.

      An example would be have a check list they hand to each customer
      listing all the product line.

      You'll make more sales without relying on sales skills.

      Another way is to bundle items which would be cheaper than buying
      separately.

      Then there is an upgrade to a higher priced model for a dollar more.

      That's the type of selling system which makes extra sales automatically
      and without hiring people with great sales skills.

      Think MacDonalds being run by 16 year old kids.

      Best,
      Ewen
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