Page 63 - Spring Into Markets

Guide 9 Is the Price Right?
Getting the price right for customers
Deciding how much to charge a customer is something that will require some research on the trader’s part.
In order to sell products, traders need to charge customers a price that is as high as possible (so that they make a good profit) but as competitive as possible (so that customers do not buy the products elsewhere).
Two key processes need to be involved in deciding the price that a trader sells his/her products for.
1: What is the competition selling the products for?
a: This will necessitate looking at traders in the market and seeing how much they are charging customers for similar/identical products
b: Visiting nearby markets to find out how much the same products cost in the local area
c: Going into High Street retailers and looking at their price points
2: The type of stall the trader is planning on having
a: A trader who pitches the stall as a quality destination for quality products can charge customers a bit more than the competition as long as customers can see and understand that the higher price is linked to ‘better’ value and/or more benefits
b: A trader who is focusing on providing a ‘value’ offer needs to meet the customer’s expectations by offering the products slightly below the prices of the competition
Guide 9 Is the Price Right? 63