The document outlines essential strategies for product pricing, highlighting the significance of accurately calculating costs, which should include all expenses such as salaries, rent, and marketing. It emphasizes the importance of competitive pricing and profitability, advising sellers to find a balance rather than setting prices too high or too low. Additionally, the document shares experiences of entrepreneurs to illustrate the consequences of poor pricing decisions and offers tips on hosting sales to boost customer engagement.

1. How to Price your
Products?
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3. Why Pricing is Important?
Whenever Someone enters your Website or Store, They are going to Consider
what is your Pricing before watching out for the Quality. I’m not trying to mean
that Quality can be Voided. But I am trying to let you know the Importance of
Pricing. In fact, Pricing is something more than that of Choosing how much to
Charge your Customers. It’s the Deciding Authority on Business’s Profit. It can
only determine the Success of Business.

4. Setting it up
How should I Fix price?
The Actual Cost should include your Salary
for Sourcing + Rent of your Store +
maintenance of your Store + Salary of your
Sales Personnel (if you have anyone).
What is the Bad Idea?
Pricing you set on your Products determines
your Profit hence deciding the Success rate of
Business. For a Quick Example, Let me say
that you’re selling Wheat. You get Wheat at a
Cost of 0.2$/Kg as you buy in Wholesale and
you spend 100$ for Transportation of 1000Kg
Wheat. People think that the Cost Price of
Wheat is 0.1$+0.2$=0.3$. Well, This is a
Wrong Approach which may lead to Low
Profits resulting in Bankruptcy.

5. Why should I
Add Salary for
myself?
I know, You will come up with this
Question.
As you know, All of us Work for
Profits. We cannot say that whole
Profit can be taken to our Home.
We have many other Expenses.
Only if you calculate in this way,
You will make at least some
Profits.

6. We should Wheat’s cost as $0.5
and if we set Wheat’s Price at
0.9$/Kg., It sounds reasonable and
will cover all your Costs in a Long
Run.
Right Solution

7. What Happens
when you don’t
comply to it?
Here’s Jacob’s
Experience...

8. What happened Actually?
Jacob has decided to sell Wheat at 0.5$ as Considering the Cost is only 0.3$,
Logically, By Selling 1000KGs of Wheat he will end up in earning 500$ and its
cost is about 300$ up to him.
At the very next month, He will be in need to Spend 100$ for Rent and 100$ For
other Expenses. So, Absolutely, He has not made any Profits.
If he Continues his Business in this way, He will bankrupt his Business within 3
Months of Business as he does not make enough money at least to Pay his Rent.

9. A Departmental Store is not going
to have only Wheat as a Product. It
will have many Products. Still, This
way of Pricing may always cause a
Bankruptcy as all Products of the
Store will be decided in the Same
Approach.
But Wait, There’s
one more thing!

10. Try to Include Everything in Your
Expenses from marketing to the
Pen you’re writing your Notes. So,
you’ll be able to calculate the
Accurate Cost of Product because,
in Pricing, A Cost should be
Considered as a Cost Always. Once
You find your Complete Cost, Add
your Desired Profit.
What should you
include in your
Cost? And how
to Fix Prices?

11. John was Shocked
to See the Selling
Prices by using
this Method. Why?

12. Why?
John is running a Departmental Store. He has calculated all his Costs in the
same way I have Explained here. He calculated Costs on his products and was
Shocked to see the Cost of each Commodity.
Why so? Because John has calculated his Cost of All Products. If he has 10
Products, He has included monthly Expenditure in all his Products instead of
Dividing it Equally.
So, He has got a Result with 10x of his Expenditure. It might be Huge to see. So
Calculate your Costs in a Right way and don’t Forget to Divide it Equally among
your Commodities.

13. Coming to an
Important Part,
How much Profit
should you Make?

14. How much Profit should you Make?
There’s no limit on How much Profit you can make. Creating your own Good
Business Plan is the Key here.
Even Some People require to Sit back and Relax. They think that they need
Maximum Profits from Sales. But, If you’re much Catchy, You’re not going to be
sought by any People.
Instead of Trying to make Biggest profits on each sale, Plan Big with Fewer
Profits. I am not trying to say that don’t seek Profits. But try to be Competitive in
the Price instead of making your Product Expensive.

15. Quick Pricing
Examples Ahead!

16. Hello Store Den Store
Images under License. Check Description.
Both are into
Boutique Business

17. Den Store
Difference between both
Hello Store
Fixed Low Prices
It Believes in WO Marketing
Fixed Premium Prices
It invests a Lot in Marketing

18. Who will make Most Profits?
In my Point of View, Den Stores will get more profit as it gets More Customers
by Marketing. However, Due to Cheap Pricing Hello Stores will also have good
Profits which is almost near to Den Stores.
So, From the Above Example, I hope that you would have got a Clear View of
How you should price.
Even though you got an Idea for above Example, Don’t implement it as soon as
you start. because These Business models need Brand Identity.

19. How should be your Pricing?
Because, For Premium pricing, You’ll be in need to be Established as a Brand.
For Word of Mouth, You’ll be in need to wait for a Lot of time.
So, Avoid these both things when you’re a Startup. I think this is the Time to
reveal my Formula for Fixing Selling Prices.
Don’t set Huge prices and don’t be too Cheaper in the Price. Be on an Average.
Don’t know what’s your Commodity’s Average Price? Try visiting your near
Stores.

20. How should be your Pricing?
Why so? Because Everyone in the Market will try to have about 40% Margin. So,
When you average the Most of the Selling Prices, You will get about 30-35%
Margin on most of the Commodities.
But don’t think that everyone will have been Setup this kind of pricing Methods.
There may be some Stupids who sell their Commodities for a Loss without even
knowing that.
So, I would suggest you to with the Pricing Method I have shared with you
before and always compare your Prices with others. with above Average
Method

21. Okay everyone likes deals right?
Yes Everyone does. Not sure with
that, Here’s a Quick Example that
shows the Everyone likes Deals.
When to Host
Deals?

22. My Experience
Myself I own a Web Hosting Business since 2014. So all these 4 Years, I have
experimented some Techniques which gave me Better Results than I expected
and that’s how I acquired about 2800 Clients in just 3 Years.
And it keeps on to Grow in a Considerable Stable Amount Every day.
Here’s my Success Formula, Don’t rely on Festivals to sell our Products. For
Example, If you experience Low sales for a Week, Then try to Host an One Day
sale with names like “Monday Madness Sale”.

23. My Experience
You can google for Interesting Naming Ideas for naming your Promotion like
this. By using this Technique, Whenever you experience low sales, You can
Improve it.
It doesn’t lets you just to Increase Sales but also an Exposure to the Public and
creating Possibilities for Word of Mouth Marketing.
Someone host a Sale always but someone Hosts it on Specific Days. For
example, Companies like GoDaddy, Bigrock has a Permanent Sale Pages

24. My Experience
Whereas I host these Sale whenever I think that this would be the Right time to
Host. Why I use this Technique, Simply Because I want to Make my Customer
feel like we’re more Trusted and they should think that Deals may never come
again like this.
This increases the Conversion rate of Sale Seekers.
Moreover, I don’t extend any Deals and I advise you not to do that. If you tend to
gain Reliability among your Customers, Then that would not be a a Good
Practice.

25. My Experience
When you extend Promotion from the Actual Schedule, Those who have Rushed
to buy at Last Minute may feel uncomfortable. hence, It decreases your
Reliability and Conversion Rate in your Next Sale.

26. When should you
Hike your Prices?

27. When should you Hike your Prices?
When you Increase your Selling Price, There are few things to look at. Look at
the Current Selling Prices of your Competitors, If their Selling Price is Higher
than that of yours, You can increase it.
However, It needs some Experiments to be Done. Increase your price Gradually
so that It won’t be felt as a Big Difference by your Customers.

28. Special Tip:
Some people may like to Offer very Cheap pricing and Obviously, Your
customers are going to fall in love with those Cheap Pricings. However, Make
sure you Slash off the Actual Price in the Rate Tag.
We all know that there are about 3 Qualities of Commodities Available in most
of the Products. If you don’t show a Was Price in your 1st Quality Commodity,
People may mistakenly consider it as a 3rd Quality Product.
So, Make sure you don’t do this Mistake in your Store.

29. So Finally,
Good Luck! For
your Success

30. We have a Textual version of this Video/Slides Please visit:
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