how to set a right price for your products on your site?

hello,

i have a site that sells designer shoes and i don't know how can i set the right prices, could someone give some advices?

 

Pricing strategy is a complex process and there are many ways to do it, but one thing you must do is make sure you cover your costs - hosting, purchase/stock costs, rent, salaries, running expenses, re-investment in employing more people, premises, or stock, profit etc etc. After that it can be as simple cost plus a percentage, or more complicated with a proportional amount of expenses being applied depending upon costs, or applying a larger proportion of costs to the most popular items. You can also base the cost on the perceived worth (or what people will pay - does a Prada bags really cost £1000's to make?), or simply base it on what other people are charging as long as costs are covered.

Larger companies have whole teams of people involved in determining the best selling price, and if you're not sure see what the market price for these items are. Based on an honest determination of your costs you should be able to work out whether you can reasonably compete. There are lots of books written about pricing strategies and you may want to have a look for them - I imagine there will also be some good online resources.

 

Actually its very easy.
You can set the price based on the competitor price.
And give discount to get more sales.

 

Just set the price according the price on the market....
If your sells is good... raise it a little...
But if viceversa .... lower it a little....
That what i do with my shop

 

I would look at competitors sites and see what they charge. Then try to charge a bit lower prices then them if possible and get more traffic to your website to increase sales and spread your website based on word of mouth.

 

With my soccer Jersey selling, I lower about half of the more popular jerseys just below competitors price and leave the rest around competitors price. This way, when they search for the more popular jerseys they'll find mine are more cheaper and they could end out buying some of the other ones that were similiarly priced to my competitors. Word of mouth is also very good, I've found alot of people have been referred on by friends that have bought the cheaper jerseys.

 

which is basically what tjsocr22 just wrote but I am a slower typer/trying to multitask lol

 

Just go and search for every product website and look for SRPs. That should give you some ideas for the prices or you can visit some online shoes store and try to compare their prices and set your price range. Always try to check your competitors for the best prices and beat them.

 

I fully agree with RonBrown, calculate ALL the costs that you need to cover with your sales income and add a profit margin on top.
Checking only online competitors and setting your price below them is not a good idea. Too many people try to sell online calculating their prices that way and in the end they are bound to fail and close shop because they either don't make a profit or they even lose money.

If you want your store to survive you need to make a profit, however how much net profit is entirely up to what you are happy with