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Selling your products online can take its toll sometimes because there are a lot of things you have to put in order first before actual sales come rolling in. And majority of the deals you close become highly dependent on how much you price your items.

If you charge too much, people might get intimidated by the high price tag. If you charge too little, people may get the wrong idea and think your goods are damaged. So, pricing is a very important factor for online sales, especially when you're signing up for online listing sites. So, if that’s the case, how does one go about coming up with the perfect price? Here are a few tips to get you on the right track.

Check the Quality and Condition

Some of the first few things people consider before buying products like bags or electronics are the condition and quality. People’s needs vary and they may sometimes look for items that have been pre-owned just to slash off a few Kinas. Having this in mind, you can’t sell your used item and expect your customers to pay the same price as they would for a new one. As a rule of thumb, the price of a product diminishes from 20% to 50% after usage, depending if your product has any minor damages or not.

But even with new products, people still do thorough inspection to see if they’re actually getting what they’re paying for. So, be mindful of how you take care of your products once you physically have it in stock.

Get a Feel of the Supply and Demand

In business, supply and demand affects sales prices significantly. If there is a scarcity in supply and an abundance of demand, you can afford to set the bar a bit higher. According to psychological studies, people will be willing to pay more than they normally would just to get something they think they really want or need. This is the reason why most exclusive distributors succeed, because only they have the rights to sell a specific product, effectively having the power to control supply and demand and claiming a monopoly over sales.

This is also why effective salespeople use the technique of creating urgency to drive more people to buy from them. Making people believe that they may be missing out on something good makes them want to buy something more.

Scout the Competition

Your competition doesn’t always have to be your enemy. Looking through how much they price their items may give you a clearer idea of how much you can sell yours. There are a few things you can do after this. You can either sell your products just a little bit higher or just a little bit lower from your competitor’s price range, depending on your marketing strategy. This competitive atmosphere will also ensure that buyers get the best value for their money.

Survey the Consumer

Sometimes, the best way to find out how much to charge is to ask the customers themselves. They are, after all, the ones paying. But most sellers take this for granted. They don’t have a grasp of their market’s necessities. Asking your target market how much they’re willing to spend for an item gives you a gauge of how high you can possibly go with your pricing index. But while it’s safe to set your ceiling to their standard, there’s still a bit more leg room to increase it just a little bit for profit.

Factor Your Needs

Your customers are important. But let’s face it, you’re doing your business to be able to earn a profit to pay for your living expenses such as maybe your rent for your house. After taking some of the factors on this list into consideration, be sure to not sell yourself short. If setting your customer’s maximum price expectation can be your pricing ceiling, the lowest amount you can take should be your pricing floor. Once you’ve identified that area between the floor and the ceiling, you can be more flexible with how you project its value to consumers.

Consider Price Influences

There are a lot more things that come into play when it comes to a sale, especially if you’re shipping items to different parts of the country. Delivery charges and taxes can cost you quite a lot. So, as a seller, you have to decide whether you’re going to shoulder that expense or pass it on to the consumer. Most people place that responsibility on the buyer so that they can display the item on online listings for a much lower price. There’s also the question of packaging and the item’s fragility. All these things play an important part in how much you decide to sell an item for.

Be on High Alert

You can never be too active. There are plenty of new products coming out in the market that may significantly affect the value of your products. Keeping a close watch on things like electronics can be useful as industries like technology can be volatile territory. Knowing what your item’s specifications are and what newer products have will be a determining factor for how much your product’s price will drop.

Pricing may be one of the biggest concerns you’ll come across as a businessperson, but knowing what makes it tick will give you a fair advantage over the competition and will secure you a regular flow of buyers.