Winter coats are a great example. They come in such a wide range of prices because people have such different needs.
Some are going to come with all the bells and whistles— extra down insulation, extra length, even battery-operated pockets to keep your hands warm.
Others are going to be a standard parka Sri Lanka Phone Number meant for milder climates and more simple budgets.
Make sure you’re comparing apples to apples here for a realistic gauge on the market.
And as you’re creating a list of price points, take note of the following:
What exactly do they have to offer that justifies their price point?
What sale prices or special offers do they have, including intro offers for new customers?
It’s important to find products or services that you’re sharing the same pricing strategy and general quality in order to get an accurate idea on what you can charge. And to see what’s really selling, look for products with a long list of reviews; that’s a good sign that their pricing may be in the right place and at least isn’t preventing customers from purchasing.
FIGURE OUT YOUR NICHE
Where exactly do you fit into the market, and where do you need to be to maintain profitability?
Keep in mind different audiences want different things. Knowing how to tap into that with the right marketing campaigns, branding, and messaging will impact how much you can afford to charge.
Cars are a great example
I’m marrie, my husband and both have good jobs, and we have no children. We’ve got pretty solid disposable income.
Despite that, I have no interest in flashy cars. I want a safe car, and I recently paid a decent MSRP for a 2022 CR-V. But I’ll drive it until the wheels fall off. I couldn’t be talked into any of the upgraded car packages. Higher-trim models because I just wanted a reliable car that had updated safety features.
I have another friend with similar income who trades in his car every few years. He wants the latest trend, so he wants a deal on more flashy cars that he’ll then work on for a few years with upgrades before he gets a new one.
My friend and I belong to two completely different audience segments, even though we have similar incomes. Appealing to the right niche can make all the difference in telling you where your pricing should be, and it will be shaped by the consumer behavior of your target audience.