Small profits and quick returns are the worst pricing strategy for small business

As I told in the previous article, most beginners hesitate to sell products at high prices.

Don’t sell yourself short. The Pricing Strategies Decide Your Incomes.

So they tend to sell their products at low prices.

If they do so, they have to sell a large quantity to make a living.

Because the profit of each product is low.

It is not efficient for small business owners.

Acquisition of new customers is not easy.

 

Small profits and quick returns are the strategy for big businesses.

They have large capital to advertise.

They are competitive to other companies for prices due to mass production.

Then, they can occupy the market.

Small businesses should not take the same strategy.

We cannot acquire many customers in a short time.

So, we should develop high added value products and sell them at high prices.

Which do you think it is easy to earn $3,000 a month?

1) sell $1 product to 3,000 customers

2) sell $300 product to 10 customers

It is definitely 2)  to earn $3,000 easily.

It is so difficult to find 3,000 customers a month.

It’s so inefficient.

Moreover,

3) sell $3,000 to only one customer

It is far easier than other ways.

All you have to do is find only one customer a month.

So, to sell high added value products at a high prices is the key to success for small businesses.