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How do you check out the competition? Well, the easiest thing to do is go to them and pretend you’re a customer – in fact even ask them to produce an item or two for you. The big advantage in this method is that when you’re out canvassing for work and get told that your competitor’s product is cheaper, better, faster, whatever, you will not only know whether the customer is just playing for a better price but will also know just how good, or bad the competition’s products actually are. b. If you find that your competitor is selling a product cheaper, don’t panic – assess the entire situation. If they are taking 2 weeks or more to produce an order which you can do in a few days, then price is less important that it may seem at first. Most customers wait for 10 minutes past the last possible moment to order, and thus cannot buy from the cheapest person. In most of the cases, they need to buy from the quickest person. Also the quality of the product they are printing onto may not be the same as yours. It may rust or the picture may fade very soon after it’s been printed. c. In cases where you are “making” the market – in other words have
no competition, it’s more difficult to work out what the selling price should be. The only real way to “work” out your selling price here, is by trial and error. There is always a perception that low price = low quality, so having the lowest price on the block is not necessarily going to give you the most business. If you’re selling into an up-market environment, then higher prices are needed, if you’re selling to a low-income environment then lower selling prices are needed. You need to set a price, and see how it goes, and adjust the prices up or down according to how your You need to sit down, take a look at your finances, and decide where and how you are going to market yourself and your products, and how much you can afford to spend to market yourself - hence the reason for saying earlier in these notes, that buying an expensive car is not going to help get you more business, but rather using that money to finance your marketing will. If times are tight, you need more advertising and not less. Less advertising = less orders = less money. This is a classic trap many businesses fall into. During tough times the first thing they cut is their marketing budget and are surprised when their business tanks. You need to advertise in areas where you get the most bang for your buck, and not just to impress the neighbours or your competitors prices are perceived in the market. Setting up a marketing budget
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