How To Set Prices in the Social Marketplace
One of the most difficult decisions you need to make as a business owner is how much to charge customers for your products or services while staying competitive with other businesses in your field. It is not always enough to calculate how much you will need to charge per product to keep your business running. You need to consider the impact that these prices will have on your customers to keep them coming to you for your services, as opposed to your competitors.
Find Out How Much You Can Sell
The first step to set prices for your products is to get an estimate from your affiliates on how much you can sell within a monthly timeframe. Do not focus on how much you would like to sell a few months down the road. If you are making monthly affiliate payments, you already have a group of people you are paying to market your product. You can get an estimate on this number by using analytics and tracking software solutions to keep track of every new customer they bring in and how much, on average, these customers spend with your company. If you are a new company, you can set prices based on what your competitors charge, and tweak this amount as you get information from marketing affiliates.
Know Your Demand Ratio
The cheaper your products are on the market, the more you will likely sell, especially if your price is significantly lower than what your competitors charge for similar quality. Items that are in high-demand are also more likely to sell. If you have an in-demand product that you can manufacture at a cheap price, it is best to keep your prices low and slowly build revenue through the years. If, on the other hand, your product is not something people purchase often or is impossible to get for a reasonable wholesale price, you can charge more for your products. Unless you have a brand or feature in your products for which customers are willing to pay more, try not to charge more for your services than similar companies.
Make Payments Easier
Once you’ve set your prices, you need to make sure your customers can pay you in a way that is fast, efficient and safe. Customers will take their business elsewhere if they do not trust their money with your company. You can ensure that you put your customers first, by taking mass payments through a payout platform that gives them more than one option to make payments.