When choosing your business, try this!  Part 2

July 6, 2021

Whatever business you decide to start, there are at least three things to remember when considering your options.

2. There's more to pricing than just making a profit

If you price your product too low, consumers may think your product is of poor quality. But if the pricing is too high, it may put some consumers off. In any case, you need to find a balance between pricing your product to attract consumers and covering the cost of offering discounts, especially if you are planning a paid advertising programme, and a reasonable product pricing is crucial.

We will look at many small business ideas in this article. You may not offer shipping services, but you still need to cover the cost of shipping. Consider your shipping costs and how they will vary in the different countries you want to serve.

Many online sellers try to build shipping costs into the retail price of their products so they can offer free delivery or at least a reasonable flat rate for shipping. Others focus on encouraging consumers to add more items to their shopping carts to qualify for free shipping (for example, free shipping on orders over $50) and thereby maximise profits.

In short, product prices can be adjusted and you can experiment with various pricing strategies until you find one that works for your business.

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