How to price a commodity?

I college dog, before the community to do a public welfare project, into a batch of raw materials later made products found that we do not know how to price (or how to price products to attract customers attention and induce their desire for consumption). After I also have doubts about this problem, to help the know, Baidu know, found that there is not a comparative system theory, very depressed. Until I bought a microblog. Huang Chengming teacher @ Data Management A new book, "Data management-insight into retail and e-commerce operations," unexpectedly see his strategy on commodity pricing, feeling very systematic, a lot of dry goods, so excerpt one of the points written in this answer (strongly recommend that everyone to buy this book, Especially in the future to engage in FMCG industry children's shoes, really benefited!! ）

(⊙o⊙) ... Formal answer

Commodity pricing is divided into three categories: cost pricing method, demand pricing method, competitive pricing method

First, the cost pricing method

Shun addition: Unit commodity price = Unit Cost of Goods * (rate of increase of 1+ goods)

Upside Down Method: Unit commodity price = Unit Cost of commodity/(n/A gross profit margin of commodity)

Target Profit Pricing method: Unit Commodity price = Total cost * (1+ target profit margin)/estimated sales quantity

(The first method is used by many channel vendors and retailers, two other brands or factories, etc.)

Second , the demand pricing method

1, the customary pricing method: According to consumer buying habits to price eg. vegetable price change in the early and late days

2, the Digital game pricing Method: Mantissa method (for example, 9.99 Yuan, 1999 yuan, etc.)

Arc Digital Pricing Method: 10 Arabic numerals in 0, 3, 5, 6, 8, 9 These arc-shaped numbers, consumers look at the excitement is not so strong

Odd/Even pricing method: This method is more to cause visual impact, such as 77777 Yuan, 888888 yuan, etc.

3, the price foil method: When determining the main price and price range, appropriate introduction of some low unit price or high price of goods, can set off the rationality of the main commodity

4, "discrimination" pricing method: to different customers to adopt different price strategies, such as buy a price, buy two pieces 90 percent Ps. For consumers to find a perfect excuse, or risk

5, Auction Pricing method: Mainly used in antique trading, land transactions and other commodities trading

Third, Competitive Pricing Method (this method is especially suitable for commodity with high price sensitivity)

1. Above competitors

When your store has these features, you can consider: Your store location is good, your products are scarce, priority listing, etc., your brand image, the credibility of higher than the opponent, you have to transfer high unit of attention to the method eg. large force integral, etc.

2, below the competitor: double-edged sword, beware vicious competition leads to a vicious circle

3, the average pricing method: The two products in general, according to the average price of the opponent to set their own price

Iv. Other Pricing methods

1, bundled sales: Commodity portfolio pricing, competitors are hard to imitate ...

2, payment method pricing: Different payment methods to obtain different prices or discounts eg. bank cards and Cash

3. Short-term Special Offer method: (commonly used in retail) short-term price reduction in commodity prices, prices in high-low-high volatility, thus stimulating consumer desire for consumption

This is a logical diagram of pricing, you can refer to the following

Finally, really strongly suggest that you go to buy that book, read the second time, more and more addicted to look!!! ^_^

How to price a commodity?