4/4/2023 0 Comments Color me green![]() In their mind, the inflated price equated to better value and higher worth. ![]() ![]() The psyche of the consumer is fascinating. Oddly, the same pieces of jewelry she couldn’t sell just the day before, were now flying off the shelves at an alarming rate at a 50% premium over yesterday’s price. People were paying for perceived value. Through some strange twist of fate, she mistakenly marked the jewelry up by 50%. So, she felt as if her only alternative was to deeply discount it. I once read of a jewelry store owner having an extremely difficult time selling a particular line of jewelry in her store. So, if price represents value and worth, then why are we afraid, at times, to ask for the price we deserve? As small business owners, especially those new in business, we sabotage ourselves early in the game by going into business offering discounts or underpricing the competition before we’ve even tested whether or not our customers are willing to pay what we ask. You can’t charge less for products or services than they cost if you want to stay in business. In archaic, it translates into value or worth. Today, let’s spend a little time talking about the second P in the marketing mix – price.īy definition, price is the quantity of one thing that is exchanged or demanded in barter or sale for another. They know how much they need to make to cover the cost of making those crayons then they factor in what people are willing to pay. If you can get a 24 ct box of crayons for about 50 cents or less, why would the crayon maker in our example price the 6 ct double ended crayons at $2? I mean, it’s fewer crayons so how do they get away with that? Well, it’s simple really. In last week’s posting, I put a question before you.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |