Xtra Biz

Pricing

xtra — Mon, 27 Oct 2008 09:05:34 +0000

For commodity products, pricing is the most important factor for purchases, especially for bulk buyers. If 2 companies offer the same level of support and the quality of the product is similar, the customer will choose the company offering lower prices.

The CEOs / manager has to decide whether he wants to sell
A. 1000 nos at a profit of 1$ each – Total profit : $1000
B. 10 nos at a margin of 2$ each – Total profit : $20

If they are greedy and want a profit of $2 each, the customers will go other companies who will work with a lower margin.

Selling a product or service

xtra — Mon, 27 Oct 2008 09:02:35 +0000

Unless a business is a monopoly, the sales and turnover of a business depends to a large extent on the following factors:
1. Product price
2. Quality and features of the product
3. Customer support and service
4. Branding or Level of awareness, if your potential buyers are not aware that your product exists, they will not be able to try it out or even send an inquiry. This is true for both consumer and industrial products.
5. Availability or distribution network is important for consumer products. If a lot of money is spent on advertising a particular product or service, but the customer is unable to buy it because it is not available , a lot of extra business is lost.

Xtra Biz

xtra — Sat, 25 Oct 2008 11:56:16 +0000

Increasing sales