Bundling products in similar niches can help brands use a single price to sell multiple products, thereby increasing the purchase value.
Small businesses looking to price their products right should consider costs, consumer trends, revenue goals and competitor pricing. To set the price right, understanding manufacturing costs, the commercial objective of the product, finding relevant consumers and the value proposition is recommended.
Utilising pricing strategies like cost-plus, competitive, value-based, and price skimming, among others, can help companies set the correct prices for their products. Retailers can also use the manufacturer suggested retail price (MSRP) to price products without hassle. Brands could follow dynamic pricing, where the price is adjusted according to the changing market variables like supply and demand.
Retailers can also use the loss-leading strategy by selling the original product at a discounted price while cross-selling and upselling complementary products to make up for the loss. Using odd numbers like 5, 7, or 9 to price products, setting a premium price to set a benchmark, displaying both discounted price and original prices for comparison, and more can enhance sales.
[23 minute read]