Tips for Pricing Your Items for a Trade Show
You have a new product or even a spin on an old product and you are trying to find the best pricing strategy for your business. In the end it all boils down to two different but simple strategies. You can either go with under pricing or over pricing.
Yes you would like to believe there is the one that is just right but in the consumers eye you will always be over or under. Not many people go to buy an item and think the price is 100 % fair without at least looking at a competitor product. Usually that is first thing people do. Even with a candy bar, when you are standing in the grocery store and you feel that need for a candy bar and you look over at the rack. You do not just grab the first candy bar you see and buy, unless you’re in a hurry, you look at what there is to offer and you decide what candy bar has the best value.
Many people looking at this candy rack will buy a median priced candy bar. It is a science and an art. They buy the median priced candy bar because they cheapest candy bar doesn’t sound appealing; they want the candy bar they think their money is worth. Most people will not go for the most expensive candy bar as they think they can have the product at a lower price. This same thought process can be applied to any product out there on the market.
When pricing your items for a trade show start with surveying friends and family. They can give you an honest opinion about what the product is worth and they can also help you figure out who your target market is.
When you know who your target market is you can figure out how much disposable income they have and how much they would be willing to spend you would not try to market a $300 microwave to a college student. But you would market that same microwave to men and women in the 25-45 range. Those people will see the value in your item and they will want to buy. That demographic has more disposable income to spend on your microwave than a college student.
Lastly you need to think about how much it cost you to make the product. You shouldn’t expect to see too much of a profit when you first start out, but your profits will increase over time as you increase in sales and have a successful company.