Retailers Forum Sept. 2014 Sept 2014 | Page 88

FORUM WORKSHOP Forum Workshop 8 The going rate in the business when I started 8 was $25 an hour. Since my computer was low• end, I set my price at $20. I calculated that if I did an hour of billable work a day, I could cover S my overhead. I knew with Fredʼs X-Press PrintE ing as my only customer, I would do more. P T E Consider The Competition M B E Setting prices relative to the competition is a R good place to start. But make certain that you 2 will cover your expenses. There are a lot of low 0 bidders out there who are courting bankruptcy. 1 Be careful not to copy them. Set your prices re4 alistically higher. Justify the difference with quality and service. Then let others copy you. You should charge as much as people are willing to pay. Is it better to sell five for $20 each or ten for $10? Well, the cost of your in- ventory for five will be lower, but people will like you better if you charge $10. If each items costs you $7, youʼre going to make more selling fewer for a higher price. However, if a customer comes to your store for that particular item and youʼve run out, he or she may think that you donʼt have much to offer and may never come back. What should you do if purchasing 100 at a time will only cost you $5 each? Your prices must balance your need to attract customers and your need to afford an ample inventory. Naturally, the type of item you sell will help you decide both. continued.. Your Business Needs Social Marketing We help you create a Facebook Page in minutes! Brand Marketing • Fan Pages • Ad Optimization Promo Syndication • Social Reputation • Custom Apps Powerful Social Publishing • Quickly and Easily F O R U M www.FBcampaigns.com