ricing a product is both an art and science. Juggling between remaining profitable and being competitive at the same time is not an easy balance to achieve.
None the less, pricing should be approached with an experimental attitude coupled with an intuitive feel for how you would like your brand or product to be perceived. Price your product too low and you can get an avalanche of sales but might consider closing up shop because you are making losses after doing the math. Price your product too high, and it gives the impression of luxury and exclusivity which may attract well off-clientele willing to pay a higher price, but you may lack volumes.
You must weigh which direction will lead to profitability, high priced products and low volumes or low priced products and higher volumes. If your store has a different range of products, then your approach can be marking some up while pricing some low to attract both price sensitive customers, as well as wealthier clients who comfortably buy the higher priced range of products.
Let’s explore some pricing strategies that you could use in order stay afloat and a step ahead of your competition.