Business planning prices. An error that affects income.
Business planning low prices for goods and services. Why, sometimes badly affects sales.
The price is your first message to people, and the strongest message. For supermarkets like “Auchan” or “Project 2000”, low prices increase the authority of these marketing monsters of sales.
But if you conduct business planning for medium and small businesses, low prices in this case only lower the authority. The price is a strong signal, if the quality is acceptable, then the high price is evidence of the quality and high level of services. For example, if you produce mobile partitions, then after analysis of prices from competitors, you can set prices higher, but they should be justified by something. In business planning, you need to pay serious attention to the price level, if you make prices above average and provide good quality of services or goods. Such business planning will be successful because the high price will talk about quality.
Even if the quality is common, “the main thing is nothing to sell, but how to sell.”So said Ray Kok – owner of the McDonalds network. Then such a business plan is successful. But, the low price is the first signal that you are losing ground, you begin to get cheaper, sell, give up, etc. D. Low price does not inspire respect, neither to the product/ service, nor to the establishment.
It is important for a person to know that he pays a high price. This is cool when you buy something expensive that not everyone can buy. And if a person suits a person, then he will value them. Because, having bought it for a good price, the one for which everyone will say: “Yes, good is not cheap”, the buyer will receive not only the goods, but also respect. Consequently, the business will receive respect, which will result in income in such a business planning. Consider this in business planning, of course, you should analyze prices and always experiment. But high prices always arouse respect, even if a product of normal quality. Business Planning occupies an important stage of building business.
Personal Translation from Businessinsider. Com