The Impact of Price Popularity on Profits
The Impact of Price Popularity on Profitsby Konstantin GoudkovThe goal of almost every business owner is to generate a profit either for themselves or their shareholders. This can be challenging at best. So much thought and effort go into running a business, accounts payable, accounts receivable, dealing with vendors, customers, etc. Because of this people sometimes do not focus on one of the most important factors- pricing. Knowing how much you can charge for your product or service is invaluable information.
Businesses typically want to increase volume and prices at the same time. In a perfect world that would be easy to accomplish, yet we do not live in a perfect world. So just how do businesses go about deciding how much to charge for a product or service? One way that businesses do this is through trial and error, by seeing how much they can charge before volume starts to drop off. This is a very ineffective method, but is practiced by more businesses than you may realize. Another method is determining what percentage of profit over cost that you want.
Perhaps you sell automobiles and decide that you require a profit of 5% on every car that is sold, and then you price accordingly. While this method is good for determining if you are going to cover overhead and other expenses, it may not be the best way to increase sales. A person can spend weeks trying to determine the correct price for their products and services. Economists have many formulas to determine price elasticity, market demand, and cost shifting. All of these economic formulas can be helpful, but are very time consuming and sometimes require hiring a consultant.
There are some easier ways to go about setting prices. Once you have determined a "ballpark" price that covers your costs, you can begin adjusting it up or down to maximize profits. A relatively new concept that is garnering a great deal of attention from businesses big and small is the concept of price popularity. Price popularity is just what the name implies, looking at how popular, or how frequently a price is used. For example, surely you have noticed how many commercials on television sell items for $19.95.
This is a very popular price when compared to $19.77. Do you see many products priced at $19.77? The frequency in which consumers see a price has a strong effect on their purchasing decisions.
Knowing about price popularity, and how to apply it, can help turn a slow selling item or service into a highly demanded item or service. Should a business set a price at $19.99 or $19.95? Does a price read differently to a consumer if it appears as $72.00 or $72? Research shows that it does in fact affect a consumer's decision making.
Gaining access to the research that shows the most popular prices, the ones that consumers feel most comfortable with, is a precious resource to a business.
This is much easier than spending the numerous hours of financial analysis to make an educated guess at what volume business will drop off if you raise or lower the price by a mere few cents.
The more a business owner knows about pricing strategies the more successful they will be in generating profits. Incorrect pricing can have devastating effects on a business. While many spend time trying to determine a break-even analysis and price elasticity, how many have really considered the psychological appearance of a price and the popularity of that price.
In today's extremely competitive business world a business owner needs every advantage they can get to outwit their competition.
Researching the information available on price popularity simply puts a business one step ahead of their competitors.
-----Konstantin Goudkov studies the psychology of pricing,ways to manipulate prices for maximum profit, and tacticsto control consumer price perception.You can find his latest report at:http://www.PricePointReport.com-----.
Five Hints for Surviving a Business Slump
Starting and running a home-based business has plenty of benefits and can generate a decent living quite easily, but the ride isn't always simple. When sales are slow or new customers are sparse, you don't need to throw in the towel and call it quits.
Business is a cycle. Sometimes it's booming and other times it's not, but neither state is permanent. The difference is that while business is booming, your biggest concern is meeting the needs of your multitude of customers. When things are not, you may be scrambling to keep everything on track.
Below you will find a few suggestions about what to do and what not to do when your home-based business hits a slump:
1) Keep in Touch with Past Customers
When business is going great, you may have a tendency to forget those past clients who helped get you where you are today.
Yet, when things slow down, they can be your safety rope. Now is the time to drop them a friendly email...
Five Hints for Surviving a Business Slump
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Spicy Autumn Soap Collection at Everything Shea Aromatic Creations
Beverly Hills, CA (ContentDesk) October 4, 2005 ? Discover a spicy selection of new glycerin shea butter soap additions such as Cinnamon, made with a touch of real Indian cinnamon bark essential oil, Apple-Mint, Cranberry Spice, Pumpkin Harvest, Comptoir Sud Pacifique's (type) Coco Vanille, Green Apple, Applejack & Peel, Ginger Fig, and the special edition feature -- La Brea Tar Pits soap.Bath & Body Products Designer Lisa Maliga describes her resourcefully named La Brea Tar Pits soap as: "The distinctive grooved shape of this natural soap comes from a special mold. The large 6.5 oz soap is gently exfoliating as it contains whole rolled oats and cornmeal. Only pure lavender and tea tree essential oils are used and it has extra shea butter. It's recommended for people who garden, paint, fix cars, or just need a super cleansing soap. And yes, it does remove tar -- it's named after those big pits of tar located in Los Angeles, California."
Spicy Autumn Soap Collection at Everything Shea Aromatic Creations
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HDTV Reviews
HDTV stands for high definition television.
It contains images that have significantly higher details than normal televisions. Pixels in an HDTV product are usually square, smaller and are placed closer together, which results in higher visual detail.
There are a few varieties of HDTVs available, like HD flatpanel TVs, HD traditional projection TVs, and HD advanced microdisplays. HD traditional projection TVs offer larger screen sizes and lower prices, but they take up more space and are quite bulky. In addition, they have a thinner viewing angle than other forms of HDTV.
The HD flat panel TV is thin and light, and can hang on a wall. Although the majority of HDTVs are HD ready and provide the widest viewing angle and the highest contrast, these are available at a higher cost. The HD advanced microdisplays offer a lightweight design and advanced technology without the expense of a flat panel HDTV. They are HD ready and provide a big viewing angle, quality...
HDTV Reviews
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How to save up to a third on gas prices
Dallas, Texas (ContentDesk) December 18, 2005 -- A Dallas Based Company, Bio Performance, introduced a product on their opeing day, December 7th, that can increase mileage from 10-35%.
The product sometimes called "The Magic Pill" is a pill that treats 15 gallons of gas or 7 and a half gallons of diesel fuel.
The product also comes in powder form.An area manager of the firm, Dr. Marvin Sprouse, said, "You begin to understand what this product can do when you consider what one of our customers reported during our test phase.
Their company was spending almost $100,000 a month on fuel for their fleet of trucks.
The average mileage per truck was 5.3 miles per gallon.
When they started using Bio Performance, their mileage climbed to 7.4 miles per gallon.
That is saving them about $30,000 a minth.""The primary mission of Bio Performance,"said Dr. Sprouse, "is to clean our environment.
This tablet will decrease emissions from your...
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