How do you choose the right price for your products?

The most important point is to complete a full research analysis:Who are your competitors?If pricing higher than competitors, why will consumers purchase your product over a cheaper one?What is the minimum profit have you budgeted for, to at least cover expense (manufacturing costs, taxes and tarriffs, delivery costs and surcharges)? How many sales do you need to meet your break-even point ?You try and work around at worst 50% sold, youwill break even for the project.
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But Some times prices establishing depends on the producers main intention in the market. Some time it could be pilot product, and manufator needs only ony purchase for it. So price in that case could be realy high. at other hand, if you (means producer) are looking for the long term cooperation, you will try to find just the middle of the highest price and the cost price
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As other members mentioned the competition, the supply and demand and cost of product plus profit margin. There is a bench-mark price, which is the market value, and this basic fundamental value has a logical calculated sum to the price. For example, the price of petrol from one oil pump station cannot be very much different from another pumping station. This is due to the cost price of the raw material, plus the cost to refine it and to transport it to the pump station and the operating cost of the station and their marketing, sales and other cost added to their profit margin becomes their selling price.
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H2k*JmYJ*XpO Marketing people differentiate the product and the market sector, and make product for the high end market and the low end market, and the medium end market sectors according to the demographic profile of the target market. There is also a variable they play with in accordance to supply and demand. For example: Hotel room rates are variable, according to the demands, during school holidays, and during holidays or festivals the room rates are higher than the normal days."Xg1w in5Oq.Y

b5P![rz x0KC For products, they will grade them as to their purity, quality and standard, for Premium product of No. 1 grade, the price will be at its maximum point, and for the lower grades they are sold at lower prices.

Reply #1 skyfly's post

good.i think it can be chosen as the biusiness english text
.J,[s,hz it is really great

Our factory always gives me the higher price, I have a example which I posted it as a thread just now:L

[quote]Originally posted by [i]jeanwayang[/i] at 2008-2-26 09:10 [url=http://forum.fobshanghai.com/redirect.php?goto=findpost&pid=3220397&ptid=318112][img]http://forum.fobshanghai.com/images/common/back.gif[/img][/url]9ue U%NB
Our factory always gives me the higher price, I have a example which I posted it as a thread just now:L [/quote]
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in fact we must know that the factory manager not major in exporting sometimes, so it's our duty to discuss with them about price of cause. is't?

Reply #1 skyfly's post

Customer pay a attention on the price priority and then quality.

most of the there prefer price, but if they have the chance to see your products, things will be different.
)uobJn d5H they may also accept your high price with your good quality. cause it worths the price.

Well ! good topic, when there is demand, there is supply.
-U(D+I^[`Z 1) Frist grade seller create demand0q{$U2lA
2) Second grade seller attract demand^jl%DI:q1U9d.n t"K4o
3) Third grade seller capture demand
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1UE1O.b9{NG6| Which grade you belong to ???

we should give a reasonable price for our product,which shows that you and your company are professional on the business,then the customers will be single-heart, more easily determined. :)

[quote]Originally posted by [i]ykkdkky[/i] at 2008-2-27 21:06 [url=http://forum.fobshanghai.com/redirect.php?goto=findpost&pid=3221420&ptid=318112][img]http://forum.fobshanghai.com/images/common/back.gif[/img][/url]
XIpN3uB vV~,v Well ! good topic, when there is demand, there is supply.'~s7kn:u4vz&E V7G
1) Frist grade seller create demand

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m0i!_ 2) Second grade seller attract demand!I)x#a~7O2Z
3) Third grade seller capture demand
5i,p FH.c"RpZ p:h.Z7Wb#B 4) Forth grade seller follow demand
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Which grade you belong to ??? [/quote]
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Nx|%~,}n i hope i'm the first one, but in fact i'm not, i believe i can do better step by step:loveliness:

in company as mine, we have no right to manage the price, so hateful:Q

The prestige is another cost

I have no right to rate the price.

Since I began to do international business... I found there are so many problems with our factory like a samll factory.
1~4b|&?*j%P_o/G But in fact. The most importatn are price and quality. If you can give him the high quanlity products together with lower price... whatever, he will place the order with you as long as you are rule to treat him...

i am hearing what U talk about,Now the first thing I want is to grow up quickly.
NbL |)u7^k I hope friends can  help me~
g1W+^ w c;[9F^I i [email]emai-sales010@maxspeedcn.com[/email]

very nice , thank u! it is very benefit for me!:victory: :handshake