Is Price Everything?

In todays climate, is price the first thing you look for?
The reason i ask is that on Amazon marketplace people sell the same products as Amazon but mostly at a higher price but they seem to still sell a lot of stuff....is customer service and quality just as important nowdays than just lowest price?
Is it worth setting up a business / website where your prices cannot match the likes of Amazon , would you still make money?

 

Price point is key, but it is not the only thing.

Convenience, value, fulfilling a need or providing a service also are applicable.

 

Price determines the quality.
But price is not always to be first. But a good quality must always take precedence.

 

People will look at the price first but bare in mind that for online business, your business image is much more important. There are more scam on the internet; therefore, people like going to the place they trust the most.

 

It really depends on whether you're talking about physical products or services. If I'm looking for a common product, then price might be a determining factor. But if I'm looking for skilled services, then price is much less important to me.

 

Price always plays a role in my decision process

 

not only price is important but the quality of the stuff is more important I think

 

I think price is definitely one of the more convenient factors to base a purchase decision on just because it's so objective - the monetary "value" of the item is quantified. However, personally, I buy things out of brand loyalty. Take the iPod - I've been having the same one for 4 years (knock on wood) and it's been great - no major hiccups anywhere. So, I consider myself a brand loyal customer to Apple...with certain limitations (like buying the iPad for example ). Brand loyalty, affordability, and the brand experience I encounter when going to buy a product are what make or break a purchase decision for me.

 

People are shopping a lot more by price these days. Price+Store rating.

 

Price is important, but even more important is your offer and how you justify your price.

If price is a major objection, remove the objection by offering a free trial or an installment plan. Or... Justify your price by doing an "apples to pineapples" comparison - i.e. "To learn everything you would in this course, you'd probably have to hire a consultant. How much would that run you? $5,000?... $10,000?..."

If it's a commodity product, you can differentiate yourself and boost perceived value by bundling free support, a free consultation or a relevant, quality bonus. Credibility and convenience are also important in niches where people comparison shop.

 

I would divide buyers into two categories.

1. Who like Price
2. Who like Quality

- People who like price never care of quality. Ultimately they end up buying a non-quality product and they have to again spend on it for repairs or low life period, which increases the total cost above the cost of a quality product which will give a longer life and standard.

- People who like quality never compromise on Price. What they need is quality service. Thus they are able to sleep more peacefully than people who like low price over quality.

If you want to sell on higher prices, then you should concentrate on quality standards and target the customers who like quality. They will pay you what you want them to pay

Regards
Abdul
MBA Marketing

 

Don't forget about Tax. Tax is also a buying point on a product. Why do you think Newegg tells its users that it is up to them to file State tax on the products they purchase? Simply put when Newegg started collecting taxes they lost sales, they soon changed their policy and now it is up to the user to pay the State the tax.

 

Price-Features-Quality-Support, they are all interlinked. Personally, I never buy anything without paying attention to these 4 attributes.