When you’re just starting a jewellery store, keeping up with the competitors can be difficult at the beginning. There are several strategies for generating your sales gradually and growing your store. One such strategy involves pricing; it is one of the most common yet effective strategies that all new businesses use to market their products and services. This is true because the price is one of the most important things that a customer looks for when purchasing anything. In other words, it is a decisive factor on which customers rely on when making any purchase. Following are some of the really useful pricing strategies –
- Cost-plus pricing – It is the simplest among all strategies. You just have to fix a selling price which will include your purchase price and your profit. You can increase or decrease the amount of profit margin according to your circumstances. You can decrease the profit at the beginning to attract new customers or can increase the price which will show that you are a reputed jeweller; some people tend to think that high price means a high-quality product.
- Demand pricing – You can increase the price of a particular commodity when it is in high demand. You can make a good profit in these circumstances. You can further increase the prices of these in-demand items when you know that you are the only one store selling those items or one of the only stores selling that commodity. Demand in jewellery in entirety can also go up in certain seasons such as on big festivals like Christmas or holidays. In short term, you can apply this strategy at weekends, people are free and are more likely to buy jewellery on weekends because of the obvious reason that people are busy during the entire week. Hatton garden jewellers London use this trick to boost their sales in a short amount of time. Using this strategy will recover the sales from off-seasons also.
- Penetration pricing – You can dive into a new category of product and attract the customers by lowering the prices of the products. This is just an extension on the first strategy but this one concerns in entering into a new market. You need to capture the attention of the regular customers of that product and then gradually increase the price to normal. This will work because people will notice that you are offering the same deal at a lower price so it is reasonable that people will convert from your competitor’s customers to your customers.
- Changing the selling price is a good take and it will definitely work out but there is always the opposite end of the coin to be considered. You can look for purchasing the products in lesser amount and sell them at the regular market price. You can then choose your unique selling strategies and convince your customers to make purchase by saying that you are offering good services and a quality product at market price. This will set you apart from your competitors and also make a decent profit. You can buy Engagement Rings in London and other varied ornaments in wholesale rate and resale them at regular cost.