To figure out whether your items are priced too high or not, do what your customer does. Search the web. According to 2006 yahoo!/OMD, there are about 66% of family who use the Internet to research on a product and 64% use the search engine to buy a product.
Take any one of your product and look up the Internet. Compare the prices with others, this would help you if you want to sell more. It is simple, you just need to type the name and ask to compare prices. It may be a little time consuming depending on the item you sell and the saturation of the market. This would provide an important insight that would help your business and make you aware of what you are up against.
You may be able to differentiate your product and convince your customer so that they buy from you. Start this by lowering your cost. This always helps. If you see that there is a possibility of further lowering your prices then do so. You would find that your item will become “lowest price ever on the web!”. Low cost helps purchase and this would make up the difference of price cut.
Guarantee a price match. Let your customers know that you would match any price and u will not be under sold. Once the customer are there, make them follow through with the purchase. You could also offer them free shipment. In case your item costs more than the competitor, you could offer free shipping as this would give your item the lowest cost at check out.
Free shipping add as an bonus to any purchaser. This word makes a huge difference whether or not you finally make the sale. If by chance you loose a customer it would be because of the customer not convinced by the cost of the item. Therefore to convince your customer that your product is worth the cost and definitely worth purchasing it from you it is important that you make certain changes.
Cost is not the only factor but one of those most important factors that influence purchase. So if you have given your customer a best buy in case of the product worth it would help you to have an edge over the rest of the competitors.
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