The price is determined by the customer's needs.

Source: Internet
Author: User

What determines the price?

"Supply-demand relationship ."

"Market ."

"Cost and industry profit margin ."

This is the content of the textbook. The actual situation is that the price is determined by the customer's needs and is irrelevant to the product cost. The cost only determines whether the enterprise needs to produce and sell the product, and the price cannot be determined.

For example, there is no market price for the most competitive high-end market. Everyone is more expensive than the customer's wallet. Customers with high dependence on the same product sell tens of millions of products. Customers with no dependence on the product are offered free of charge.

 

However, there are three factors that affect the price:

First, the competitor's need is the main factor affecting the price.

Second, relative monopoly is a secondary factor.

Third, the maximum consumption endurance of the target customer group for this product is limited.

Reduce costs and adjust the three factors that determine the price to increase profits.

Competitors need to be realistic and the main influencing factors. For example, shopping malls are engaged in promotions and mineral water is offered free of charge, and the nearby sales department cannot sell the profits. Therefore, we need to carefully analyze the needs of competitors, because they also decide only your price and profit. How can mineral water be sold for profit? This answer is not difficult. It is to move the commissary to the desert. Here, the store a with mineral water forms a relatively monopoly with the distant store B. The further the distance between A and B, the higher the Monopoly. people are willing to pay more for it.

How can I sell mineral water at the highest price in the world? Ask the richest people in the world to take all their assets and come to the desert without water. When they are dying, the most lucrative mineral water commissary A in the world appears. This is the deal price of mineral water, which can be set to the sum of the richest people's property. The amount of consumption they can endure is much higher than that of ordinary people, that is, the maximum consumption endurance is the highest.

 

 

Practice: "according to statistical analysis, the return rate of investing a dollar in old customers is 10 times that of new customers, so we need to keep old customers ."

After a user buys a product, the relative monopoly generated by the dependence increases the consumption rate and amount, which is the business with the least investment and the highest return.

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