For those business owners, they just need to show how much they should charge their products and services so that customers are willing to buy whatever they have to offer. Which is the reason why they have to learn how to set a price list.
Business owners know that the price list can determine whether or not customers would want to buy whatever their business has to offer. By knowing how to properly set prices to each product and/or service, they’ll make sure that these customers aren’t afraid to order whatever they want or need, as well as ensuring that they don’t end up in the hands of their competitors.
Steps to Making Your Price List
- The first thing you’ll have to do is to create a list of everything that you’re going to want to sell. This means making an extensive product list as well as service list wherein all of your employees will be able to use as reference so that they know what to charge. If you have other stores or other branches in different areas, then you’ll want to make a list based on what they’re selling as each of them might have something that other branches do not.
- You must decide if your list caters to either standardized or tailored price. Depending on the type of business you wish to operate, you have either two choices: you could decide to run a business where all products, no matter who buys them, have the same price; or it could be that the price of whatever you’re selling to customers is something that depends on the type of project, as well as an estimate on the materials that are being used. In the event that you wish to stick with the latter option, then you’ll want to provide the customer with the “worst-case scenario” price so that he or she won’t be shocked once receiving the bill.
- Learn to format your price list. Just about all price lists are set up in a tabular form. This method makes it much easier for customers to create customer orders by giving them a complete list of all the products/services, as well as allowing them to view all of their respective prices. All other important information, such as the shipping cost and tax of the product, should also be included when making the price list. In addition, it’s best to arrange all of the products in an alphabetical manner so that you, your employees, and your customers will have an easier time finding whatever is needed. It’s also best that you provide an explanation regarding any add-on products or services.
- After you have developed your price list, you’ll want to share it with your customers so that they’ll have a reference to tell them what they want and how much it’s going to cost them. You can do this by sharing your price list via your store’s website and/or you can send it through an e-mail. You’ll also want to make sure that your regulars are kept up to date with any price changes that you’ve made or any new products that your business is selling. So do not forget to send them the updated list to make sure that they are still well-informed.
- Prepare written estimates in the event that they’re needed. This is so that you and your customers can reference your price list during situations where it’s needed. However, you may also use the list to create estimates regarding the services your customers wish to avail. All you have to do before you provide the customer with the service is to have him/her sign a confirmation letter that states that the customer acknowledges that he/she has understood the details regarding the estimated price. You’ll also want to include other information such as the overall price, the component costs, the terms and conditions for payment, your contact details and more.
- It’s best that you use software or a service to help you prepare and create a price list. There a lot of businesses that make use of office software programs to either download or create their own price list template that they can use to provide customers with the information regarding the prices of everything they sell. There might be services within your general area that you can avail to help make a price list for you. While this option is time-saving, you must remember that it’s an additional cost. So only make use of this kind of service if you have no clue on how to create your own price list.
How to Adjust Your Prices
- Keep track of all the customers that you have and the products that are being moved or shipped in order to help you see if your sales figures are either good or bad. It’s very important to keep track of this so that you can adjust your price list accordingly as well as making sure that it makes sense.
- Remember to use psychology to make customers want to buy whatever you’re selling. Studies have shown that people are more likely to buy something that’s worth $5.99 rather than something that’s priced at $6.00. This is because this kind of pricing makes customers think that they’re paying for 5 dollars rather six, giving them the idea that they’re actually paying less.
- Lower your prices based to help increase your sales. Although there are a lot of businesses that are afraid to do this because lowering one’s price means losing rather than gaining, there are ways to decrease sales while still being able to earn. There are methods such as researching to find lower cost suppliers for product components or reducing the portions on certain food packages are a great way to lower your prices as well as helping you gain profit.
- After a period of time, you’ll want to raise your prices depending on the type of strategic plan that you come up with. There are various reasons as to why you’ll want to increase the prices of your products/services. These reasons include production costs, profit margins, market inflation, and more. However, if you increase your prices too fast, then you might just drive your customers away. What you can do is conduct a market research to stay ahead of your competition and to see how they’re pricing their goods and services. You may then increase your price gradually and strategically, and at least no more than five to ten percent. This way, customers are more willing to accept the new prices that your business is offering them.