4 Mistakes Often Made in Product Pricing
Product pricing is an element that you need to pay attention to before your product is sold on the market. Mistakes in pricing will have a direct impact on market acceptance of your product.
A product that is not / less accepted by the market will keep your sales from doing well, and this is not a condition that anyone wants. Therefore, you need to know some common mistakes that are often made to avoid conditions like the one above.
1. Install the Same Profit Margin for Each Product
Each product has its uniqueness, starting from its value to who is the target market. In other words, each product has a different potential and use-value.
Some products may be very successful in the market, while others are just substitutes. Products that are slow to sell should have a larger profit margin than products that sell faster.
Remember that increasing your profit margins even if you just a little, can have a big impact on your business as a whole.
2. Ignoring Small Charges
Every cost that you incur in the production process must be calculated as a whole, even the smallest costs. This is necessary so that you can set the price correctly.
Even though the value looks small, the nominal will become large if it accumulates over time. Small fees such as a credit card fee of 1-3% per transaction, packaging fees, shipping costs, even the cost of buying a small cutter need to be included.
3. Selling Too Cheap or Too Expensive
Selling products at low prices is often used as a strategy to win the competition in the market. Granted, this is not a bad strategy if your product has a fast turnaround – which means you have to sell the product at the lowest price on the market. If your profit margins are low and your product turnover is slow, it is not recommended to use this strategy. We recommend that you provide additional value to your product so that the product can be sold at a “normal” price following the advantages it has.
Conversely, selling products that are too expensive will also hurt you if they are not accompanied by good product quality. Nobody is willing to pay a fortune for a product that is not quality.
4. Giving Unreasonable Discounts
Discount strategies can indeed attract consumer attention. However, if it is not calculated correctly, the discount will make your profit margin thinner or even suffer a loss.
By only providing a 10% discount (genuine discount, no price manipulation), you may need to sell 50% more of the product to make the same profit as selling at the normal price.
Giving too big a discount can also raise the suspicion of your customers. Keep in mind that consumers are getting smarter now and can easily find real price information on the internet.
They not only see the discount displayed, but also see the price of the product before getting a discount. This means, if the product price before the discount is too expensive, consumers will think that the discount is just price manipulation.
That is the discussion about 4 mistakes that are often made in the process of determining product prices. So that your business grows, don’t forget to advertise through the Froggy Ads service, you can start by advertising your products so that later you can increase visitors on your online business portal. Froggy Ads is an online advertising service that can help you control all your product campaigns. helps you target your desired marketing target and provides you with multiple options for marketing your product.