We do it every
day. When you need to buy gas – you might go to a competitor’s
station – even if they only offer gas $0.03 cheaper
than your usual stop. When you go to McDonalds, you’re
thrilled if they started a new 2 for $2 deal. But what
if I came up to you and told you I’d sell you my Jaguar
for only $1,000. You’re probably not going to go for
it. Why? Because it’s too cheap – there must be something
wrong with it. Our instincts are there to protect us.
When you’re selling on the ‘net, structuring your prices
depends on what you’re promoting. If it’s a tangible
item that someone is purchasing to have you ship to
them - such as an Mp3 player – then you have to be competitive
with other vendors. If you’re selling services, you
have to be competitive as well – but in both cases,
you might come up against a foreign competitor who can
slash their prices far below yours – so you need to
make sure you address that with your potential customers.
Your price point must ensure that you profit in the
end. That means taking into consideration every single
element of investment you have in your ventures. From
the domain name to the shipping charges and the time
you invest. You want your customers to feel like they’ve
gotten a good deal, but at the same that they’ve invested
in something worth the money they spent. You also have
to take a look at supply and demand. Trends carry a
lot of weight with products – both informational and
tangible. You might find a great wholesale deal on a
shipment of iPods – or decide to write a Survival Guide
to the Bird Flu. Look for newsworthy items online and
in the paper and target your products around that.
What Is the Fair Market Value of Your Product? It depends
on where you’re selling it. If it’s an eBay item, then
your customers are going to be bargain-hunting more
than your average visitor who arrived at your site through
a search engine or ad. Is your inventory new, refurbished,
or used? That can affect the price you set. Do you offer
a warranty on it? Anything you can do to increase its
value means you can charge a bit more. Look at the current
competition in the marketplace. If other people are
selling something far below what you could sell it for,
then find another product. If the market is flooded
with too many sellers and not enough buyers – then their
prices will plummet and you don’t want to be stuck with
excess inventory. However, if the competition is doing
a poor job of promoting the products, and you think
you have a chance at excelling in that area, then by
all means – go for it!
Use additional resources to help you pick a target
price point. Invest in some trade magazines, look at
catalogues, and see what the manufacturer recommends
as the selling price.
For more tips on picking the right price point, check
out our website at www.elearn2earn.com.
"Internet Income Made Easy", is one of the best e-books
on the net to cover everything you need to get started
and succeed in an e-business. It can be found at the
publisher's site http://www.elearn2earn.com/
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