Bizzalley's Business Q&A
Q) What kind of customers am I targeting?
Bizzalley's Answer-In setting your price, you must know the kind of customers you are hoping to attract. Are your products for low salary earners or high salary earners? Entrepreneurs? Define your major customer base so you know their buying capacity and then fix a price from there. If you fix a high price for your products, you'll be targeting high earners and will sell less but make more per transaction. If you make your price low, you will sell more but make less per transaction. Find what works for you and set your price accordingly.
Q) Should my Competitors price affect mine?
Bizzalley's Answer-There are 3 important questions to answer when deciding on your pricing:
i. Who else makes this product I'm offering?
ii. Is my product better or worse?
iii. What does the customer think?
Answer these questions honestly before proceeding with your pricing. If your product is better than your competitors then scale your price upwards and if not, scale it downwards. Also note that as your competitor's prices change, so should yours. This strategy is important, especially if your products are basic necessities and the price of your products is in the price range of other products like yours.
Q)Can I provide varying product quality to capture a wider customer base.
Bizzalley's Answer-Yes you should. It is always better to give customers choices to choose from. This way you will be able to attract a wide number of customers with varying purchasing power. Have at least 3 different product price range or plans; basic, medium and premium. Feel free to brand the categories the way you want based on what exactly your product is.
Q)What's the right way to adjust my prices?
Bizzalley's Answer-The best way to adjust prices is to find out the customers willingness to pay. You can do this through observing the buying habits of your customers; what seasons do they buy your
products more? When does the demand for your products reduce? Also, conduct consumer researches through focus groups and interviews to find out when and where you can adjust your prices to suit both you and your customers.
Q)How can I make the customer pay more for my product?
Bizzalley's Answer-Customers are generally willing to pay for services and products they know are valuable to them. It is your duty to ensure that your customers know how valuable your products are to them. If you want your customers to pick your product over the cheaper ones, you must make them not just see and understand the difference your product brings but also make them value that difference.
Q)How effective is it to have bundle prices?
Bizzalley'sAnswer-Bundling products for a single price leads to more sales of all your products as customers would rather buy three products if they think there's a reduction in price than buy all 3
products differently. Yes, you may have to give up a bit by reducing the total price but in the end, you'll be selling out more products compared to if you have to sell them individually. A perfect example of a successfully bundled product is McDonalds Fries and drinks with a burger.
Q)Should I offer discounts to attract more customers?
Bizzalley'sAnswer-While promotions, discounts, and freebies are great every now and then, do not make them a regular occurrence for your products or people will get the feeling that your goods are overpriced and you are not making adequate sales. If your products only sell more when they are on discount then you are targeting the wrong customers and you need to go back to the drawing board. So, you can offer discounts but be strategic about it.
Q)Does your pricing strategy correlate with your long-term plans?
Bizzalley's Answer-
Your pricing strategies should align with the long-term plans for your business. How long do you plan for your business to exist? Does your business thrive based on the season or is it a nonseasonal business? All these questions would determine what pricing strategy you use to grow your business. If you have seasonal products then your pricing strategy should involve prices going up when it is in high demand and then reducing when it is out of season or you could reduce when it is in high demand to rake in more sales and then increase the price when the product is in low demand. Your product and long-term plans should guide you on what is
best when making your pricing strategy.
Q)Am I allowed to price based on extra value or benefits?
Bizzalley's Answer-
Your customers will pay more if they know that your product has better value than the regular products. The key to pricing this way is to ensure that they know what extra value this product will be adding to them that they cannot get in other places. This means you must up your advertising and marketing strategies to ensure that the customer gets the idea perfectly. If your product saves them more time, then let that be your leading point. Whatever you do, be sure to market what value your product has that puts your product above similar products.
Bizzalley's Answer-In setting your price, you must know the kind of customers you are hoping to attract. Are your products for low salary earners or high salary earners? Entrepreneurs? Define your major customer base so you know their buying capacity and then fix a price from there. If you fix a high price for your products, you'll be targeting high earners and will sell less but make more per transaction. If you make your price low, you will sell more but make less per transaction. Find what works for you and set your price accordingly.
Q) Should my Competitors price affect mine?
Bizzalley's Answer-There are 3 important questions to answer when deciding on your pricing:
i. Who else makes this product I'm offering?
iii. What does the customer think?
Answer these questions honestly before proceeding with your pricing. If your product is better than your competitors then scale your price upwards and if not, scale it downwards. Also note that as your competitor's prices change, so should yours. This strategy is important, especially if your products are basic necessities and the price of your products is in the price range of other products like yours.
Q)Can I provide varying product quality to capture a wider customer base.
Bizzalley's Answer-Yes you should. It is always better to give customers choices to choose from. This way you will be able to attract a wide number of customers with varying purchasing power. Have at least 3 different product price range or plans; basic, medium and premium. Feel free to brand the categories the way you want based on what exactly your product is.
Q)What's the right way to adjust my prices?
Bizzalley's Answer-The best way to adjust prices is to find out the customers willingness to pay. You can do this through observing the buying habits of your customers; what seasons do they buy your
products more? When does the demand for your products reduce? Also, conduct consumer researches through focus groups and interviews to find out when and where you can adjust your prices to suit both you and your customers.
Q)How can I make the customer pay more for my product?
Bizzalley's Answer-Customers are generally willing to pay for services and products they know are valuable to them. It is your duty to ensure that your customers know how valuable your products are to them. If you want your customers to pick your product over the cheaper ones, you must make them not just see and understand the difference your product brings but also make them value that difference.
Q)How effective is it to have bundle prices?
Bizzalley'sAnswer-Bundling products for a single price leads to more sales of all your products as customers would rather buy three products if they think there's a reduction in price than buy all 3
products differently. Yes, you may have to give up a bit by reducing the total price but in the end, you'll be selling out more products compared to if you have to sell them individually. A perfect example of a successfully bundled product is McDonalds Fries and drinks with a burger.
Q)Should I offer discounts to attract more customers?
Bizzalley'sAnswer-While promotions, discounts, and freebies are great every now and then, do not make them a regular occurrence for your products or people will get the feeling that your goods are overpriced and you are not making adequate sales. If your products only sell more when they are on discount then you are targeting the wrong customers and you need to go back to the drawing board. So, you can offer discounts but be strategic about it.
Q)Does your pricing strategy correlate with your long-term plans?
Bizzalley's Answer-
Your pricing strategies should align with the long-term plans for your business. How long do you plan for your business to exist? Does your business thrive based on the season or is it a nonseasonal business? All these questions would determine what pricing strategy you use to grow your business. If you have seasonal products then your pricing strategy should involve prices going up when it is in high demand and then reducing when it is out of season or you could reduce when it is in high demand to rake in more sales and then increase the price when the product is in low demand. Your product and long-term plans should guide you on what is
best when making your pricing strategy.
Q)Am I allowed to price based on extra value or benefits?
Bizzalley's Answer-
Your customers will pay more if they know that your product has better value than the regular products. The key to pricing this way is to ensure that they know what extra value this product will be adding to them that they cannot get in other places. This means you must up your advertising and marketing strategies to ensure that the customer gets the idea perfectly. If your product saves them more time, then let that be your leading point. Whatever you do, be sure to market what value your product has that puts your product above similar products.
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