How do I price my products / service?
This is that one thing that I used a lot of time on and I am sure everyone who has a service or a product goes through the tough moments of pricing. What to price and what not to price. How will the customer feel if they see the rate on this certain product, and so on. It’s not an easy thing, and it shouldn’t be easy either.
Shall one go 100% up in profit?
It depends on the type of product. I have a few products which cost me around 10 usd included shipping and any customs etc, and I sell them further for 15 usd. And then I have products that carry an amazing for 100% to 200% profit on each sale. As long as it doesn’t go over the board, and deep inside you know you are not destroying the market, just do it.
But you should be very careful when pricing too high, unless you have built a position in a certain category and even better if you are the only one that has that product ownership.
Remember never to underestimate the customers reasoning. If lots of them say your product is too expensive, go back to the bench and recalculate.
Lower your profit, and re-introduce your product into the market. At the end of the day, it’s better that people get used to your product due to the low cost, than to never look at it because it’s three times more expensive than other popular brands. Your product might be the best thing in the world according to your little brother, but the customer cares about his hard earned money, so should you if you want it to switch places.