One of the big inhibitors to people pursuing a successful business is their discouragement when they see their prices will have to be relatively high. Another big inhibitor is fear someone will steal their idea. De minimus!
Yes, price is one of the Four P's, product price place promotion. But just one, and not the most important. At the specialty level, product, that is, its design, is most important. Price is least. Price only has a secondary issue or what volume at what price point. iPhones would still sell profitably at $2000 or at $500, only the quantity sold would change.
Even when selling the exact same thing, price is not that big of a deal, then place and promotion matters. For example, here is a famous crisp bread that sells for $4.49 as a stock item in an upscale grocery store. Not two miles away, it sells for $3.89 as a stock item at Safeway, some 60 cents less. but wait wait... Safeway often puts it on sale.... another buck forty off, for a total of two bucks less. And there is more, a manufacturers coupon is on the price ledge, for another buck off: total $1.49. I save $3 off a $4.49 item by stopping by 2 miles away.
You know nothing, let your customers decide if the price you need charge is right. All you need is enough customers at a profitable price to cover the supplier minimum, in a workable amount of time. If so, you are on your way.
Feel free to forward this by email to three of your friends.
Yes, price is one of the Four P's, product price place promotion. But just one, and not the most important. At the specialty level, product, that is, its design, is most important. Price is least. Price only has a secondary issue or what volume at what price point. iPhones would still sell profitably at $2000 or at $500, only the quantity sold would change.
Even when selling the exact same thing, price is not that big of a deal, then place and promotion matters. For example, here is a famous crisp bread that sells for $4.49 as a stock item in an upscale grocery store. Not two miles away, it sells for $3.89 as a stock item at Safeway, some 60 cents less. but wait wait... Safeway often puts it on sale.... another buck forty off, for a total of two bucks less. And there is more, a manufacturers coupon is on the price ledge, for another buck off: total $1.49. I save $3 off a $4.49 item by stopping by 2 miles away.
You know nothing, let your customers decide if the price you need charge is right. All you need is enough customers at a profitable price to cover the supplier minimum, in a workable amount of time. If so, you are on your way.
Feel free to forward this by email to three of your friends.
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