Ways to Conquer Pricing Pitfalls
Your Konga shop is a business, and businesses need to make a profit to stay viable. To run a successful business doesn’t come cheap. To sustain your online store the profits must keep rolling in and this starts with effective pricing.
Unfortunately there is no standard formula to determining prices. It is up to you to tailor prices to the contours of your own business. Putting an amount on your products can be very challenging. In addition to obvious factors such as material costs and market rates, you should also consider your popularity, business goals, product category and related industry standards. Here are some solutions to common pricing challenges.
Pinpoint the Product Value- Your pricing should reflect the specialness, value and in the case that they are handmade items, they should also depict the personal connection and craftsmanship. With handmade cloths when calculating the price you have to factor in the time you spent designing, sourcing materials, photographing etc.
Know Your Target Market-What you are willingly and able to pay for a product may differ vastly from your target market’s budget. As such, this should not be a criteria for pricing. You should always remember you are not your customer. Research who your target customers are and what they would be willing to pay. You can conduct this research by visiting other online stores, social media and the likes.