Bdtyktl

I have a fairly new small business and, after making a small market analysis, I realised my prices are quite (very, really) lower than that of the competition. To clarify, the quality of the products I sell vary widely among competitors, but the quality I offer is the best in my country. I have been struggling trying to find the best price for my product. I have read that underpricing might actually drive sales away because the product appears cheap. On the other hand, overpricing it also seems to decrease sales because of obvious reasons. So, I am kind of lost here.

• Is it the best option to keep my prices low and find a way to grow market share? Maybe through marketing and good advertising that involves mentioning the low prices (while showing confidence in the quality)?




• Is it best to match my competitors prices and compete merely through quality and good service (often lacking in them)? This would mean an increase of almoast 100% in my price




• Is it best to be cheaper than the competition but not THAT cheaper? Maybe there is a margin, such as 10%, 15%, 20% cheaper that attracts more sales without looking cheap.

My main goal is to grow as fast as possible, both in market share and in total revenue. I somehow think that being able to sell the same product at the best quality for half the price should be an immense advantage that I should be able to exploit somehow, but I'm unsure how. For anyone wondering, it's a fairly new product here so competition hasn't driven the prices down too much yet, so maybe that's what has given me the opportunity to sell low. I know there are no right answers, I'm just looking for some smart opinions! Thanks a lot in advance

Sell as high as possible, not as low as possible.

Until a lower price appears somewhere else. Then, you might want to decrease the price only if the competition really affected you.

You sell low, you're a new company with few overheads, so long as the quality is competitive this is a selling point and understandable. So you need to get your product known. I've given away products for that reason.

Working out price is a bit different, that very much depends on the product. If you make a big profit at half price, then you could start with that, my main product at the moment is a quarter of the competitions and is a better product in all ways. But I actually make more profit than them since my overheads are tiny.