Post by account_disabled on Dec 7, 2023 4:49:06 GMT -5
Well let's start. The first thing you should do is be clear about the difference between the margin and the markup. When we talk about margin , we are referring only to the net profit we obtain from selling a product, subtracting the cost of creating it. But of course, the problem with this metric is that it does not take into account other expenses fixed and important advertising, logistics, personnel or infrastructure, among others. However, markup shows us the total cost that a product has for us . By being clear about the total that we are going to invest, we will be able to set a price that allows us to know the real benefit that we will receive.
Reasons to know if you have a problem with your prices In photo editing servies reality, there is usually not much mystery in this. Generally, the two main problems you can have with your prices are that they are too high or too low. What happens if the price is too cheap? With a price that is too low, the real value of your product is not perceived , so the quality even if it is very good is called into question. This may also mean that the benefits we obtain are very small or even zero. And if we take into account the markup , the sale price may be lower than what it cost us to create it.
What happens if it is very expensive? On the contrary, the higher the price, the more it will cost us to sell the course because the initial barrier to the user will be very strong. We have to work much harder to convey the maximum possible value. It also happens in Premium services. Sometimes offering exclusive bonuses, on support or in person sessions involves additional costs.
Reasons to know if you have a problem with your prices In photo editing servies reality, there is usually not much mystery in this. Generally, the two main problems you can have with your prices are that they are too high or too low. What happens if the price is too cheap? With a price that is too low, the real value of your product is not perceived , so the quality even if it is very good is called into question. This may also mean that the benefits we obtain are very small or even zero. And if we take into account the markup , the sale price may be lower than what it cost us to create it.
What happens if it is very expensive? On the contrary, the higher the price, the more it will cost us to sell the course because the initial barrier to the user will be very strong. We have to work much harder to convey the maximum possible value. It also happens in Premium services. Sometimes offering exclusive bonuses, on support or in person sessions involves additional costs.