This strategy can be risky for a start-up business, as the profit margin may no

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You need concrete actions. Actions for the customer to feel. This chapter of our guide was made in partnership with ecommasters.ro , our strategic partner. Ecommasters is a national leader in specialized consulting services for online stores seeking accelerated scaling. 7.2 How to set prices for products Determining your selling price is one of the most important steps you must take, as the survival and, subsequently, growth of your business depends on it. Priced relative to the competition Before making a purchase, many customers compare and analyze the price of products on competing websites.




Technology has constantly advanced in recent years, so websites and applications have British Student Phone Number List been developed that offer the possibility of comparing several products simultaneously. The price alignment strategy is the method by which the price of the products is determined in relation to the prices charged by the competitors. This strategy can be risky for a start-up business, as the profit margin may not be as high as that of competitors, which is why setting a price close to them could be a critical mistake. Price relative to value It represents the strategy by which the price of products is established according to the value that customers receive upon purchase; the final consumer will be willing to pay a higher price for a product only if he perceives that the value he receives is superior to its purchase cost.




This strategy is considered to be a way in which you can significantly increase the profitability of the business, as long as you offer a high value in the market. The strategy is recommended for companies that have quality, premium products and that address a specific segment of very loyal consumers. An analysis of the market and, in particular, of the profile of the ideal customer is necessary to be able to identify how much he is willing to pay for the products offered. However, it is not advisable to set the price based only on the value you think the customer perceives, but you should also take into account other important factors, such as: notoriety, reviews, acquisition cost, etc. The skimming method The skimming method is a strategy that can be adopted and implemented by businesses that market innovative or unique products where competition is non-existent. Initially, a high price can be set for the products.