regarding best pricing for max sales in new store

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Topic created : 16.03.2010, 07:09

TycoonTariq

hi friends
ive got questions regarding the setting of prices of products in stores. i'll take the example of mobile phones in the city of Hamburg, West Germany....

in the city retail report (hamburg) for cell phones u can see that average price in store is 1613$, average quality is 1 and brand=0.

but in the 'top seller' list (as of date 16-mar-2010) we can see that the price ranges from 550$ to 2700$, quality ranges from 1 to 5.75 and brand from 0 to 1.07. in the city centre the max quality of 4.22 (brand=.27) is selling for 1400$ only and there r other sellers selling at even lower prices.

now consider this: i have a new store in city centre of hamburg with reputation=1.18.

there can be 2 scenarios supply-wise:
1) i procure cell phones from supplier "levjxrf-Invest" having quality= 2.43 (brand=0) and price= 490.18$
2) i procure from "MADHU CORP." having quality= 1 (brand=0) and price= 260.25$ (or any other supplier having quality=1 and brand=0)

now my questions are regarding the best possible pricing to get max sales (considering that my store reputation is not high):
1) should i procure quality 1 (brand=0) phones and price them slightly below average price (say 1600$ or 1500$)
2) should i procure quality 1 (brand=0) phones and price them slightly below 550$ as that is the lowest price in 'top 10 sellers' (say 540$ or 500$)
3) should i procure quality 2.43 (brand=0) phones and price them slightly above store average price (say 1700$ to 1900$)
4) should i procure quality 2.43 (brand=0) phones and price them below 1400$ (which is the price of phones with quality=4.22 in the 'top seller' list)

kindly advice me on this aspect so that max possible sales can be derived. my current number of visitors is also low (214 visitors). but with advertising that can be improved a lot in the next 7-10 days

regards
tariq
india

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16.03.2010, 07:55

mrstickball

Do you want max sales or max revenue? Big difference.

Ultimately, the key is better advertising: You need a lot of customers to drive sales of your cell phones. If you don't have customers, the price/quality won't matter.

The best case scenario would be that you get the highest Q phones, and sell them at, or slightly below market average. If you sell too many, increase prices. If you sell too few, decrease.

16.03.2010, 09:13

VLLord

Golden Empire

There are two variants to sell equal volumes:

1. For 1-st quality: city district: better - resedential area, price: 70-80% from city average
2. For 2+ quality: city district: better - city centre, price: 100-130% from city average

Now lets count your profit:
1. ($1260-$260)*0.7=$700 from 1 phone
2. ($1990-$490)*0.7=$1050 from 1 phone
Second way is better Well

Natural resources and Raw materials. Relief fund on Mary

16.03.2010, 10:43

thesupertramp

Where is the fun if the answer is given to you straight out?

Try them out!

List of forums -> Questions and answers. Help.-> regarding best pricing for max sales in new store

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List of forums -> Questions and answers. Help. -> regarding best pricing for max sales in new store

List of forums -> Questions and answers. Help.-> regarding best pricing for max sales in new store