What is your product? How much does it cost to pay for your services? How can you determine the value of a product or service? Often this is a very difficult evaluation. The answers to the old standby are "the value that someone is willing to pay for it" or, for a product, "what to do" is not very satisfactory. In fact, does one of these answers really tell us how to determine the value? Are these responses telling us what price should be added to a product or service?
When it comes time to determine the value of a product or service, we need to ask questions about what you want to sell. I examined the questions Mark H. McCormack asked about the value of "What are not taught at Harvard Business School: Comments on Smart Street Managers" and slightly modified them from my own experience to take this into account when determining the value list of things to do:
1. What is the price of? Although this is not the value, we will consider it when determining the value of the product. For a service, you can see the time and how much you spend on time in the service.
2nd How unique is it? Is this a product or service that people can buy from their competitors? Are competitors cheaper than you? What determines your product or service from the rest? What is the benefit of a product or service compared to a competition?
3rd How fast do customers need to sell them? First, the experts did not believe FedEx was a good idea. Who would pay for things to go overnight? Well, speed is an increasing element of the product or service value. I know that at our law firm speed is sometimes very important to customers and they pay it separately.
4th What is the replacement cost? Something that is easily interchangeable can not do the thing that is difficult to achieve.
5th Is this a fad item or element that people spend with great passion? Is this a premium product or service that people are willing to pay? What is the value of a product or service? Sometimes increasing the price of something creates value because people expect to get more out of the higher price tag
. Is this a one-time agreement or something that will continue in the future? Do you try to contact the consumer to continue with your products or services? Do you sell the printer less because it will sell money to the future?
This is just a few considerations when determining the value of a product or service. Do not be afraid of a higher price if that is the value you have determined. As I ranked fifth, higher prices can really help to sell, as consumers believe they have higher value due to the higher price tag.
Even if we take into account both the above and the variables, it sells, there is still some guesswork in determining the "right" price. You can prove afterwards that your price is too high or too low. It's too high and can always lower the price to get rid of stocks. It's too low and can increase the price for future consumers, or at least it will be better next time.
Determining the value is not an exact science. However, if you take into account some of the questions that are presented in this article, we will better understand how we are selling anything you sell.
Source by sbobet