24 Dec

The Psychology of Price: How to Set Up Correct Pricing For Your Product?

Last Updated on December 24, 2021 by Ruchir Shastri

How to set up correct pricing for your business and clients alike to stay profitable and not to lose customer loyalty?

The first thing to consider is to have a product knowledgeable person on board. Someone who really knows about the business and what is essential to succeed. In most cases, this person is the CEO or company’s owner as they are those who are responsible for overall profitability and performance. Or course, market, company goals, and competition have an impact on pricing and commercial policy.

Psychology of price is not an easy topic; however, it can drive us to understanding of how this overall process works. There are pricing techniques that help to set up prices to catch peoples’ attention also the are some basic rules that all the businesses should know about. Pricing techniques or basic rules both guide us to have remarkable results in the process. We will cover them, so you are not overwhelmed with all the existing techniques in the psychology of price.

Market Research

Market Research

Market research should go hand to hand with business, but in many cases, we do not pay the necessary attention to it. If we know who the competitors are, we will have a more clear idea of what we may face. Based on that, we will also know the audience we are pointing to and the feedback we’re going to receive.

Know Your Business

You should know all operational business costs as this is the basic when setting up prices. We should have this information always at hand because it is not going to be logical to sell something 30% below the cost price. Of course, businesses should and will use discounts to let people know about special deals and boost sales, though this will be just in a promotional case and should not heavily influence your business marginality.

Knowing Your Audience

Once the business is launched it should have an audience in mind, depending on this audience will be the prices and the goals the business must set. The most important thing is to stay realistic: businesses cannot wait for gross profits if they are just focusing on competitive prices. On the other hand, it is possible to have competitive prices, because you make a profit from mass sales and not of the individual product price.

Stay Aware of the Market Situation

The markets are changing every single second around the world: some products or services are lagging and if the company is not adapting to those changes the customer will jump away easily because the business will be out of date. This applied to all types of business. Clothes, electronics, services to name a few.

Set Up Basic Prices

Basic Prices

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22 Dec

What Platform to Choose to Start Selling Online? Own Website, Marketplace or Social Media

Last Updated on December 22, 2021 by Ruchir Shastri

When talking about sales, people become creative to sell, be it either service or product. The pandemic has changed the world and our lifestyle: some businesses have migrated to work remotely, others integrated automatic business processes, etc. In the end, everyone has one single goal – to drive more sales and profitability in the long run.

At present, we have many options to sell services or products: however, the question is which will be the best one for our business? We will take a look at the most common options and which one could be the most beneficial for our business.

Before talking about sources and mediums to sell, it is important to highlight that there are various types of businesses, and depending on that people can go with the option that better fits their needs. Nevertheless, this should be chosen as smartly as possible. As far as sales are concerned, the main channels that come to peoples’ minds are social media, marketplace, or own website, but what will be the one you need in your particular case? We will outline the main pros and cons of them so as you’ll be able to make your own conclusions.

Social Media

Social Medial Communication

Everybody has access to social media, for instance, this could seem easy, because people can post what they offer, even on the go. However, it is not easy to engage followers just because in order to build reputation, it is necessary to follow the process with marketing otherwise business will be just a fan page like any other around. If people like what the business sells, they will be expanding the word,  the branding grows to the word of mouth and this will help to let people know about your products and services. However, if people are not 100% happy with the products or services that you offer and/or the customer service is terrible, this will harm your social media reputation right away and affect sales negatively.

Marketplace

There are a few marketplace options around which have become extremely popular during recent years: this is the fast way to build an audience and drive sales without huge initial investments. Nevertheless, selling on the marketplace delivers more competitors as due to the low initial costs more and more businesses may enter them. Also, another issue when using the marketplace is that people rarely realize from whom exactly they are buying: they are just looking for something and make their choice depending on price, delivery options, and reviews. And the same as with social media, you need to get a positive reputation and reviews in order to stay afloat.

Own Website

Own Website

Compared to having a physical store, we can say that the website is cheaper for businesses that want to expand their business nationwide or around the world, no matter where they are located. Also, people can use different payment gateway options, so clients can purchase from the website without leaving a home or on the go. However, to be successful it must be user-friendly and catch people’s attention. Moreover, marketing expenses for running your own website will also be higher if compared to marketplace sales and social media (in general).

In conclusion, every option choice depends on the type of business you run, sales plans, and marketing budgets you have. Also, you can combine several of these sources to make your channels more diverse and not depend on a single option.

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