What do you think is most important when selling goods to customers?
I guess it could depend on the products you provide but I just did a recent poll on Twitter to ask what is most important when purchasing goods and this was the response.
1. Price - 40%
2. Quality of service - 23%
3. Variety of brands - 0%
4. All of the above - 37%
We all know that price is one of the first things buyers look at these days but the problem I find is the competition!
Competitors may be more established, they may have a larger customer base and they may purchase more stock in bulk but this doesn't always mean they are the cheapest then you have those who sell just on ebay or Amazon and sell for ridiculously low prices!
A manufacturer will set a MSRP (Manufacturers Suggested Retail Price) or RRP (Recommended Retail Price) so lets say their price is £24.99 and a range of competitors are selling this for £24.99 and then there's others who will try to beat this by selling it for £24.95, £22.99, £19.99 and then as low as something like £16.99!
Just how do you compete with this when your supplier could be charging nearly the same price?
Do not try selling the product for such a low price if it means cutting a huge percentage of you profits unless you sell a lot of them because being cheaper could be damaging your business.
Most online stores don't tend to sell for the MSRP / RRP and are usually lower and today, competition is very high so how do you structure your prices knowing they are not too low or too high so customers will return?
The quality of service to customers is always my first priorty and if I can set prices that are just right for my customers, I know that they will return but beating competitors who are more established is tough and it doesn't help when suppliers do not help but I'm hoping this will change because one supplier had a bit of a laugh and simply said that if I provide a suppliers prices, they will beat the prices, even if it means just a tiny percentage lower as they love my wallet! Haha.
I would love to learn more than I know about price structures and although I cannot beat some competitors yet, especially certain ebayers who charge such low prices, (having no idea how they do this) I will bring prices down on certain lines as the customer base grows and more sales come in.
Prices I charge are reasonable and I know some manufacturers are not very happy when sellers charge really low prices as it damages their reputation when they know they provide high quality goods that are worth the price they recommend.
Happy to hear your opinions and have you gone through any negotiations with suppliers to help your business and how did you go about this?
Steve Jarvis | Proprietor/ Owner Of Figureland www.figureland.co.uk Tweet & Follow: @FigurelandUK Call During Opening Hours Mon-Fri 9am - 5.30pm Tel: 01895 349595 Email: firstname.lastname@example.org