It is always a good idea to give your customers a bargain, but that doesn’t mean that you should undersell your product. If you are running a sublimation printing business, you must always look to match your product with the right price. After all, it’s not a hobby but a business you are running.
Here are some ways you can ensure that you are getting the best price for your product:
Perceived Value
Many business owners make the mistake of thinking that people always want cheap products. This isn’t true. Customers today want quality above all else, in addition to customer service.
This is why you should never sell your product by solely considering its cost. If a sub product costs $15 to make, it doesn’t mean that a price above $15 is good. What you should be playing on is the perceived value.
Perceived value is what customers think that the product is worth. This means if the customer thinks that a product is worth $25, then you should sell that product at $25, even though it costs only $2 to make. However, if a product costs $16 to make, and has a perceived value of just $20, then you would be better off not producing it.
You should base your pricing strategy on what customers are willing to pay.
The best way to price your product is by identifying the perceived value of your product and then working backwards to figure out realistic profit margins. If the margin is low, then find ways to cut down the cost of production or drop the product altogether.
Up selling
A customer will never reveal to you what they are actually willing to spend on a particular product. Find out which price range your customers are comfortable with and bump it to the next level. You can go as high as possible, depending on how you justify the price.
The thing about sub products is that they can be marketed as family heirlooms, which is why people will be able to pay so much more than the cost.
Don’t Compete On Price
Another mistake that sublimation printing business do is competing with each other on price. Remember that once you lower your prices, it would be really difficult to increase them again. Starting a price war is easy, but it would only drive you out of business as you won’t be able to cover your fixed costs.
Always try and compete with quality, service and delivery time.
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