How do you do best (most money, least stress, etc.) in business? Higher prices sell less or Lower Prices sell more?

When I was in business I based most everything on Lower Prices - Keep it as cheap as I possiably can (often ended up causing me to barely break even). I am not sure it was the best approach. I have talked to some people that have suggested in business that you should price your products high - so you are well compensated, and it will end up working out well, even though you have less customers, things will be easier and the customers you do have will be happy...What do you think?

I often look for the lowest price, but I am not sure I am a good reflection of what most people are like, so I wanted to ask and see what you think. Thanks Asked by AkivaTheDog 52 months ago Similar questions: money stress business gher prices sell Lower Prices Business.

Similar questions: money stress business gher prices sell Lower Prices.

It depends... Your business strategy really depends on what you are trying to sell - more specifically, it depends on the "market" that you are trying to sell your product in. Some relevant questions are: 1. How "different" or "unique" is my product?

Are there many other products that can substitute for the purpose my product serves? 2. How many other people are selling the same or similar products?

What makes me different from them? Ideally, you want to find a product and/or market in which you can "differentiate" yourself and charge a premium price for the need you and your product are meeting in the marketplace. Differentiation can be achieved via a specific feature of the product that sets it apart AND/OR in the way that you deliver the product (anything from packaging to a higher level of service such as home delivery).

Differentiation is also known as "value-add" - what value are you - or your product - adding that the competition does not? Otherwise, you are stuck in a "commodity market" and forced to compete solely on price - which drives down profit margin and is usually only viable when you can achieve extremely high volumes and/or create a low-cost (lower than your competitors) supply model such as Walmart. Commodity markets are very difficult for small companies to compete in.

You said that you often look for the lowest price...but usually consumers are not solely looking at price alone - they are looking for the best "value", especially in a non-commodity market. Even though we all like low prices - we will most often NOT choose to pay the lowest price if that particular product is sub-standard or does not meet some minimum criteria that we have and there is another (substitute) product that does meet the standard or criteria. Another consideration is that we probably won’t choose the lowest priced item if the person or company selling that item does not meet our criteria (such as trustworthiness).

In summary, the best way to be successful in business is to find a way to create the best VALUE for the customer while preferably achieving the highest profit margin by differentiating your product or the way you deliver your product. Below is a really good link for further research if you are interested: en.wikipedia.org/wiki/Differentiation_%2... Hope this helps. Good Luck!

-mb .

This is why there are business majors :) In the few economics classes I've taken and the quite a few books I've read on starting your own business, I've learned that there are more theories on this question than there are fish in the sea! More specifically, there are different theories based on the type of market you're in, the kind of competition you have, who your target demographic is, where you sell your goods, what kind of goods you sell, how people find out about your goods, etc. This is how business majors get jobs! Let me give you just a few examples.

In the most simple scenario, you have one product to sell, you are the only one selling it, and there is only one type of customer. Then you can plot a simple supply and demand curve to find the optimal price. If you price it too high, you make less sales, if you price it too low you sell for less than you could be making.

Of course, it's never that simple! Take for example toothpaste. I recently heard of a study that tooth paste manufacturers did about the prices on their specialty tooth pastes.

If customers were willing to spend a certain amount on regular toothpaste, they wanted to be charged more for special toothpaste! When customers were given the option of choosing a toothpaste with baking soda and peroxide at the same price as a regular toothpaste, they felt like it must be poor quality since it didn't cost more. When the company offered them the specialty toothpaste at a higher price, more people wanted to buy it, because they felt like they were paying more for a higher quality product!

That's just a single example of how customers behave irrationally about price. You also find examples of customers spending more for a higher priced item for so they can brag about how much they spent, you'll find customers who buy way more of an item than they can possibly use because they get a bulk discount, you'll find customers who will always buy a familiar brand no matter what the cost, all sorts of strange behaviors that you might not think make any sense.So there isn't a catch-all answer to this question. The real answer is that you have to carefully analyze the various factors involved in your particular business, and find one of the best ways to price your products.

There may be multiple price strategies that work best, sometimes having the same product at multiple different price points! MightyCow_DontFollow's Recommendations Buying Trances: A New Psychology of Sales and Marketing Amazon List Price: $24.95 Used from: $13.30 Average Customer Rating: 4.0 out of 5 (based on 8 reviews) Mathematics for Retail Buying Amazon List Price: $66.00 Used from: $19.99 Branded: The Buying and Selling of Teenagers Amazon List Price: $15.95 Used from: $1.96 Average Customer Rating: 3.5 out of 5 (based on 12 reviews) eBay the Smart Way: Selling, Buying, and Profiting on the Web's #1 Auction Site, Second Edition Amazon List Price: $17.95 Used from: $0.65 Average Customer Rating: 3.5 out of 5 (based on 30 reviews) .

Here's a simple tip This is more of a tip, because I do not own a buisness. If you've heard of supply and demand, you know that they must reach an equallbrium before you can reap the most profit. If the supply is high and the demand is low, you're going to sell less because no one wants your product; vise versa, if the supply is low and the demand is high, you're also going to sell less because you cannot supply the public with what they want, and they will most likely go to another retailer who can accomodate them.

Also, if the demand is high, you can raise the price to reap a better profit. If the demand is low, you'll have to lower the price because few people want it. It may make no sense, but it really does.

For example, you have a TV that has a small screen of about 20 inches. Nowadays, no one wants a 20 inch screen, so not many people will buy them. Say you have 500 of these TVs and you only have 100 people to buy them, and you're selling them for $200.00.

Since the demand is so low, you'll have to lower the price to possibly $50.00 since you aren't going to make much profit, but you also need to please the people who are interrested in your product. You're right that people do like to bargain hunt, so the lowest price usually wins the most customers, even with something that doesn't sell. Now, imagine that you're selling 500 56-inch, plasma screen HDTVs.

Lots of bells and whistles, there. Pretty inticing, right? Let's say that the remaining 400 people who didn't buy your last product are really going for these new Tvs. At your store, they only for $1,000, but they're flying off the shelves like hotcakes.

What do you do? Raise the price. If they really want them, they'll be willing to pay higher prices for them, thus making you wealthier.

You can raise it to $1,500, and if they're still flying off the shelves, then raise it even more! ***One more thing: If somehow one of the items used to make your Tvs is in short supply - glass for the screen is scarce or something... lots of companies will raise their prices to compensate for the scarcity. If you keep your prices the same and not raise them, more people will go to you because you have the lowest price.

Think of the gas problem; people are always looking for the lowest price for gas when they can. Sources: Economics Sakura's Recommendations Marketing Management (12th Edition) (Marketing Management) Amazon List Price: $166.67 Used from: $58.00 Average Customer Rating: 4.0 out of 5 (based on 18 reviews) Little Red Book of Selling: 12.5 Principles of Sales Greatness Amazon List Price: $19.95 Used from: $8.35 Average Customer Rating: 4.5 out of 5 (based on 87 reviews) The Long Tail: Why the Future of Business is Selling Less of More Amazon List Price: $24.95 Used from: $10.43 Average Customer Rating: 4.0 out of 5 (based on 144 reviews) Little Gold Book of YES! Attitude: How to Find, Build and Keep a YES!

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1 You can sell 10 and make ten cents each or sell one and make a dollar. What's best? Selling ten puts more product out there and more word of mouth referrals for more future business but with it brings you having to use cheaper products to stay competitive and ten folks that need warranty and customer service.Ie.

More stress, but more future potential. Selling one gives you the same total profit but less potential for growth, but less stress in having to provide service but more stress for not growing. Find a comfortable medium and always use products that sell themselves with their performance and reliability per dollar and and give the absolute best service possible.

People will come to you for the service alone and be willing to pay more for your products. Dell did this in the computer industry.

You can sell 10 and make ten cents each or sell one and make a dollar. What's best? Selling ten puts more product out there and more word of mouth referrals for more future business but with it brings you having to use cheaper products to stay competitive and ten folks that need warranty and customer service.Ie.

More stress, but more future potential. Selling one gives you the same total profit but less potential for growth, but less stress in having to provide service but more stress for not growing. Find a comfortable medium and always use products that sell themselves with their performance and reliability per dollar and and give the absolute best service possible.

People will come to you for the service alone and be willing to pay more for your products. Dell did this in the computer industry.

2 Take a look at the success of Wal-Mart or the 99 cent store for example, they sell cheap products and some of them suck so you learn not to buy "that" product there. Why go to Gelson's and buy a 2-liter soda for 3.00 when you can get it for half the price anywhere else? People want the best quality for the cheapest price and are sometimes willing to pay more for name brand if it's truly better.

I used to buy payless shoes until they kept falling apart, now I buy Sketchers, sure its not nike, .

Take a look at the success of Wal-Mart or the 99 cent store for example, they sell cheap products and some of them suck so you learn not to buy "that" product there. Why go to Gelson's and buy a 2-liter soda for 3.00 when you can get it for half the price anywhere else? People want the best quality for the cheapest price and are sometimes willing to pay more for name brand if it's truly better.

I used to buy payless shoes until they kept falling apart, now I buy Sketchers, sure its not nike.

Vehicle fuel prices are high and moving higher... this impacts the cost of everything. Any investment changes in order? " "why are kindle prices higher than regular book prices?

Especially when it comes to computer related books. " "Are higher taxes the reason gas prices in Europe are more expensive than the US? " "Has anyone been able to get lower prices on the Kindle 2 other than using the free My Shopping Genie?" "Do I need a business license to sell/provide a service?

" "Wanting to Sell my Beanie Baby Collection . . Where to get best Prices?

" "Where can I find money for my small business startup? " "don't I need a business license or something else to sell on amazon?" "So I have a business where I sell products online. Now I am not going global yet, but am going national.

" "If I have a business license to sell merchandise, can I only sell it at the business address provided?

Vehicle fuel prices are high and moving higher... this impacts the cost of everything. Any investment changes in order?

Especially when it comes to computer related books.

Wanting to Sell my Beanie Baby Collection . . Where to get best Prices?

So I have a business where I sell products online. Now I am not going global yet, but am going national.

I cant really gove you an answer,but what I can give you is a way to a solution, that is you have to find the anglde that you relate to or peaks your interest. A good paper is one that people get drawn into because it reaches them ln some way.As for me WW11 to me, I think of the holocaust and the effect it had on the survivors, their families and those who stood by and did nothing until it was too late.