6 How to Setting Price A Product (Part 2)

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This next series of 6 how to setting price on a product that has been published 2 day ago. Has been discussed previously set prices based on production costs, mark up and following the market trend based. Now we'll discuss the rest is, above market pricing, skimming and yields.

4. Pricing Above Market Price

Some people view, price reflects the quality.  If you dare, you can set a price above the market price, consumers will view our products are quality products.

Certain products such as medicines, multivitamins and milk, have a tendency of consumers think more higher the price more better the quality. Chances are, their quality is good or just a pricing strategy. We can play here if you clever and in accordance with your business and products are marketed.

5. Skimming Pricing

Skimming pricing means when fist time you market a product you set a high price. Does not mean high prices above the market, it could be same as normal price or market price. The point is first price should be higher than price further. These companies do not wait until have benefit rates can be lowered. It's pure pricing strategy.

Smart companies will enter the market first with a high price to get public perception that their products are pretty good. After getting perception that products are good, they start releasing the next product with a cheaper price. The second and subsequent items have cheap prices for quality products is lower than the first. Companies implementing this strategy because it assumes that price is a sensitive subject in the market.

6. Selling Pricing is based on Yields

Selling Pricing is based on Yields means how long it takes capital to get back. After return of capital may be selling price could be lowered slowly. Similar to skimming pricing, the difference is yields on capital account until the company gets back.

For example, to produce a product, company spent $ 100,000. If companies want to return within a year, minimum profit you need is $ 10,000 per month. You  can adjust the sale price you set is able to gain $ 10,000 in one month. After one year by a margin like that, companies can lower the selling price slowly.

That's 6 ways to set the price of a product that we can choose. Indeed there are many other methods, the most popular is this 6 way. We learn about the sale price of final destination so we can increase sales.

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