The focus of this article is to share how to price products according to the crowd.
To be honest, many people are troubled by the problem of product pricing. Some friends who have been entrepreneurs for many years often do not know how much pricing is appropriate because of a product.
This problem has puzzled me for many years, until that time when I looked at this problem from a different perspective, it suddenly became clear
Generally, there are two pricing methods:
1. Refer to the price of competitors for pricing.
2. Pricing is based on product cost plus a certain percentage of profit.
In fact, I think neither of these two methods is suitable.
A、 If we refer to competitors' pricing, our products will It is equivalent to being used as a benchmark by peers, If your strength is inferior to that of your opponent, will you become a foil to your opponent and put yourself in a passive position? Is this a taboo for entrepreneurship?
B、 If we only add a certain percentage of profit to the price, it seems that our product price is not high or low, impartial, and very moderate! I think the customer should accept this price. How does this shape product value? How to highlight product advantages? Finally, I found out that the customer didn't pay the bill, but he just said hello to himself
How should the product be priced?
First of all, we need to understand that our product pricing is not strongly related to product costs;
Many people don't know how to price, because the brain has automatically linked product cost and product pricing, forming an anchor point.
Therefore, when pricing, we always aim at our own cost, which constrains the pricing space.
In the end, I fell into an endless tangled circle of the brain: the price was set low, I felt unprofitable, the price was set high, and I worried that the customer might not accept it
The "antidote" to this problem is in the following sentence;
In fact, what customers buy is not the product itself, but the value that the product brings to customers!
I wonder if you can understand?
This sentence brings us several information points:
a) Select the right customer group;
b) Identify the needs of a customer group;
c) Create different values for different customer groups;
These information are very important!
As long as you can find the corresponding information points step by step, you can do a good job in pricing your products.
Now the fox will tell you about it alone;
a) Select the right customer group
Different customer groups are willing to pay different prices for the same product.
For example, the same "outdoor tent",
On PDD, it can sell for 200;
On JD, you can sell 280;
Why?
Because different platforms and different customer groups have different psychological needs for the products they buy.
Even if the same person,
Buying on PDD is for saving money, cheap and wool psychology;
Buying on Jingdong is for the sake of quality, confidence and speed;
So in JD, there can be a premium.
The customer is willing to spend more money to buy a peace of mind.
On the contrary, on PDD, the same customer can give you a bad comment for a few cents
There are many segmentation dimensions of customer groups, such as occupation, age, hobbies, work nature, etc;
Choose different platforms (actually not just platforms), People with different states and different needs can set different prices!
Your product cannot be sold to everyone. The same product can be sold to different people at different prices.
Therefore, it is important to determine the good people before pricing!
b) Identify the needs of customer groups
This does not need in-depth analysis. As we all know, selling products is selling demand.
After positioning the target group, find out the real needs of this group, and you know how to go to the next step to shape value.
What is the real demand?
For example, outdoor tents;
It is sold to children to play at home so that they can have more fun and pay more attention to their entertainment needs, but they are not necessarily willing to pay a lot of money for it;
It is sold for camping on holidays, in order to experience outdoor life, pay more attention to the use experience, install conveniently, and be willing to pay a certain fee for it;
For those sold for exploration and camping, they need to resist the bad weather and wild animals, pay more attention to safety, require high quality products, and be portable. After all, this is related to life safety, so they are willing to pay high prices, and need to build a sense of trust
This is a completely different demand for products from different people.
Of course, there are many points that can be subdivided, and they will not be expanded here one by one. After all, you are more familiar with your own products.
In short, the more thoroughly you understand the needs of customers, the more stable your control over prices will be.
c) Create different values for different customer groups;
Through the above analysis of the fox, I wonder if you understand?
When you locate good people and find their needs, you can shape the value according to their needs.
Back to the first sentence: Customer purchased It is not the product itself, but the value that the product brings to customers!
The customer bought a tent for the children, which brought experience and fun to the children, and paid attention to the health of materials and the safety of children.
When customers use it for adventure camping, they buy their own safety and security in the outdoors, because no matter how cheap the tent is, life is gone, everything is gone.
The design, material, packaging, etc. of your products may be different when sold to different people, and the value of your products needs to change according to the needs of the people.
Fox Summary
1. The trilogy of crowd pricing: finding the right crowd - finding demand - shaping value;
2. The price of the same product can be completely different if it is targeted at different groups and has different payment capabilities;
3. For the same product, different people have different needs for the product, which will bring different values to customers, and the price may vary greatly.
Author: Fox loves to talk nonsense
This article is authorized to be released and does not represent the position of APP dry goods stores. If it is reproduced, please contact the original author.
The original link is as follows: https://mp.weixin.qq.com/s/kW-sVgJAd4vU7y1grTd9dQ