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Lowest Price - Enjoy Fast Profits
by Sharon Albright
Published on this site: April 25th, 2006 - See
more articles from this month
Lowest price of any product is the price that is set at the
minimum without undergoing any loss by either the businessmen
or the customers. Before you fix the lowest prices, you should
research on factors like what to sell, how to sell and whom
to sell. After these factors are decided you should fix the
prices of the products and services that you want to sell.
How to win a price war?
A close research on Economics suggests that price is the result
of demand and supply. The market will always settle on a certain
amount. The wholesalers and retailers will start fixing their
own prices depending upon the equilibrium of the market price.
If you can be one of those wholesalers or retailers, fixing
your prices at the lowest then you can be assured of huge
profits.
Traditionally there are three ways to set the price for
a product:
- Standard Markup - always adding the same percentage
markup to the cost of products [i.e. cost plus50%]
- Competitive Parity - charging the same price or
average price of the competition
- Zero-based pricing - receiving a small margin
per item with high volume of sales
You should fix your price based on the perceived value to
the customers. To fix the lowest price without undergoing
any loss, you should know what people want to pay? Either
contact a market research firm or do it yourself if you are
in a budget.
Pricing for a healthy business
Setting lowest price does not mean that you undervalue your
products and services. While lowest pricing is a blessing
amongst businessmen, under-pricing is a curse for them. Getting
sound business advice solves the first problem of understanding
the best way to approach pricing of one's product or service. Remember that costs determine the lowest price and must include
overhead expenses, demand and supply factors of that product
or services.
Since cost can determine lowest price, therefore concentrate
to keep your cost of production low. Try to use advanced machineries
that will produce high quantity of products with little amount
of raw materials. This will offer you to produce in bulk and you can keep the price much lower than other wholesalers.
Visit websites of people selling the same products, compare
their price lists with one another and then set your own price.
This will help you to set the lowest price for your products.
Benefits of setting lowest price
There are several benefits of fixing lowest price. They
are:
- You will get lifetime customers who will come to you
for business again and again.
- You will gain fast popularity in the market, both amongst
businessmen and customers.
- You will have quick cash flow, as customers' will crowd
to your shop.
- You are assured of long-term huge profits.
Your customers are tough and demanding, so supply products
and services at lowest prices. This will help you to earn
lifetime customer relationships.
Sharon Albright is the owner of http://www.find-lowest-prices-here.info.
Read more articles on Lowest and visit her recommended resources.
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