Product Pricing
Product Pricing

Product Pricing for Your Home Based Business

 

When it comes to product pricing I ask many questions and do a lot of research. Having the proper pricing strategies in place and knowing what the market place will bear is very important to your bottom line. Here are just a few questions that I ask when I am deciding on a product or service to market for my home based business.

  • Is the Product or Service Already in the Marketplace?
  • If it is Not in the Marketplace Why Not?
  • If the Product is in the Marketplace What Prices are My Competitors Selling if for?
  • How Much will the Product Cost My Home Based Business?
  • What are the Cost of Shipping the Product?
  • Who is the Target Market and Target Group?
  • Is the Product in a Hot Target Market and Target Group? 
  • The 4 P'S to Product Pricing and Pricing Strategies

Is the Product or Service Already in the Marketplace?

Asking this question not only helps us to understand who our competition is, but also allows us to see how large the marketplace is for the product. If there are many competitors then you may have a very large marketplace to sell in. If a product is already in the marketplace that is a sign that there is a need for it. Now the question is is how much of a supply and demand is there for this product?

As you can see one question inevitably leads to many more.  This is important when we are researching the products and or services that may or may not become part of our home based business. Product pricing is important but the size of your target group and potential growth is vital to your business success.

Product Pricing Promotional Links

If the Product or Service is not in the Marketplace Why Not?

Why is the product not available in the marketplace. Is it because it is a new invention? Or did market research come up with little demand, a small target group or was there a government issue? Has the product been available in the marketplace once before and pulled? Was the product development too costly for the return on investment? It may take a lot of research to answer these questions but they are well worth the time. Your business will be using this product to generate income and the more thorough you are with your research the more profitable it will be for your home based business.  

If the Product is in the Marketplace What Prices are My Competitors Selling if for?

This may seem like an obvious question but it is a very important one. When trying to find a manufacturer to buy your products from, you will need to know the product pricing currently being offered to your potential customers. If the lowest prices in the marketplace are less then you can buy directly from the manufacturer then there is no point in even considering getting involved with the product. It would indicate that the manufacturers are selling directly to the end user.

On the other hand if the product pricing offers a decent markup from what you can purchase the product from you may have a winner on your hands. Then you would check out the supply and demand of that product further. 


In most marketplaces there will be a fairly reasonable price swing from highest to lowest prices. Pricing strategies can be based on these differences to create special sales and coupon type marketing. It is a not uncommon for your customers to pay more for a given item if they perceive that they are receiving a real value. With that said being the cheapest price doesn't always mean you will make more sales. 

How Much Will the Product Cost My Home Based Business?

Once you have your manufacturers lined up the next question is how much will the product cost your business before you sell it. What are all the fees that are necessary to acquire the product for distribution? Can you get better pricing stocking inventory or would it be better to drop ship?

Product Pricing Promotional Links

Put your business logo on one of our high quality bags! Save at DesignAShirt.com.

Have Computer Problems? Immediate Troubleshooting Solutions. Instant Diagnosis! Optimize Your PC.

Looking for a loan? Private Deals - Private Lenders. Bad credit is not an issue. Find out more: Click Here

What are the Cost of Shipping the Product?

This is an often neglected question. How much is the shipping of the product going to cost. Whether you are drop shipping or stocking inventory your need to include shipping in your product pricing and pricing strategies. Many online stores are offering free shipping or a very low flat rate price for shipping.

In order to offer low or free shipping you will need to have the cost put into the product pricing. Sometimes I noticed that after doing my initial research I find out that with shipping cost included in the product price, there really isn't very much profit.  I may just walk away from the product unless I believe I can use it for promotional purposes.

Who is the Target Market and Target Group?

Defining the target market and target group will help you determine who your customers are? How old are they, what is their annual income. What activities do they have in common? What are their demographics? Knowing who your customers are will open up many different ideas for product pricing and pricing strategies as well as marketing avenues.

Is the Product in a Hot Target Market and Target Group? 

You have determined your target market and target group but is it a hot target market? Is the target market growing or dwindling? There are some target markets that have reached their peaks and are declining. This holds true to target groups within the target market. 

Product Pricing Promotional Links

Super Affiliate Handbook. Start Your Own Home-Based Affiliate Marketing Business With Super Affiliate Rosalind Gardners Expert Guidance!

Film Distributors Directory. Fast Selling Film Distributors Directory. Unique Product.

Operation Drop Ship Secure Online Provider of Drop Shipping and Wholesale Sources for resale in online auctions, websites and brick and mortar stores.

This Product Sets Up A Complete Health Internet Business With Fully-Operational ESales Manager To Close Sales Automatically & Has Multiple Income Streams

The 4 P'S to Product Pricing and Pricing Strategies

1) Product… What do you sell? What does your customer buy? What are its major benefits? How important and unique are they?

2) Promotion… How do you promote your product or service?

3) Place… How do you ship from place A to place B?

4) Price… How do you decide on which price to charge?

There are so many important decisions to make when coming up with the right product pricing the first time. The market place is not very forgiving when it comes to second chances.

Did You Already Set Your Product Pricing? 

So you already found the perfect product and or service for your new home based business. Is your pricing up-to-date, reflecting current marketing conditions? How do you know... how do you know for sure... that you have the right price?

Perfect pricing answers all of the above questions. "Make Your Price Sell!, The Masters Course" is a free download that I found which is informative and right on the money.
 

This course really impressed me with the thoroughness of the information about pricing products and or services.  Good pricing strategies teamed with the correct product pricing will either make or break your home based business. Armed with the right information you will be miles ahead of your competition.  

Bottom Line:

There are many components to product pricing and pricing strategies. Taking the time to do product research including finding your manufacturers is very important. Having an understanding of your target market as well as the target group within that market is essential to effective pricing and marketing.

Product Pricing

Product Pricing

Don't forget to Sign up for my Newsletter below. Your email will be used only for the Home-Based-Business-Solutions newsletter. I respect your privacy and will not sell your email.

 

Enter your E-mail Address

 

Enter your First Name (optional)

Then

Don't worry -- your e-mail address is totally secure.
I promise to use it only to send you Home Based Business Solutions.

 

123inkjets - Printer Ink, Toner, and More


Done Your Research on Product Pricing? See More Articles

footer for home based business page