Quote from: kotajikikox on June 04, 2025, 03:22:32 PM

If you are planning to build a business or even if you are just a consumer, I believe you should be aware of pricing strategies used by most sellers. If you want to build a business this can help you dictate a pricing point for your goods or services and as a consumer this might help you be more responsible in buying.

1) Value based pricing. Basically a product is priced based on the percepted value of the product by the people. This allows for more profit since sellers can offer higher prices. Higher percepted value means maybe the business is credible and has some associated value to it for example Apple products. You can argue they can be a bit cheaper purpose wise but since they are a big name, they can afford to price massively.

2) Competition based pricing. This will be helpful for sellers who are wanting to break through a market. If a market is highly competitive, you might want to sell your goods for a lower price to attract more customers to you. It can help you get customers but you might not be able to get as much profit due to low pricing.

3) Cost based pricing. This might be the most common where the sellers just add a certain percentage on top of what they have spent for making of the product. Including the operational costs and whatnot. This is a lot simple to calculate and preferred by most beginners.

A more competitive approach would be pricing based on competition. Especially if it’s a highly competitive niche or a weak market. When there’s a seasonal decline or the market is just weak, you need to monitor your competitors and position your price so it’s neither the highest nor the lowest, but somewhere in the middle. At the very start of launching a product, it might even be worth lowering the price so it’s on the cheaper side giving the product a chance to climb higher in the rankings.