A business question?
Answer:
It works perfectly for tangibles where quality can be standardised and camparison of quality can be easily made (eg pepe jeans carnaby style, or even iron rod with technical specification exactly same as big co.s are offering).
the problem with intangibles, like knowledge, is that the buyer can't assess the quality unless he has used the product. In these cases low price means that quality is low, unless u can prove ur crednetials. Like u r an investment banker from big bulge bracket investment banks and offering IB courses, or Oxford MBA or u have given corporate courses to big firms. Even with any one such things in ur profile can make ur product sell. But if u want somebody to believe that u're an expert is xyz but haven't proved urself yet then u can expect that LOW PRICE = BAD QUALITY.
From my eBay experience as a seller, if you put something too low, people think it is less quality. If you are competitive with others, then they buy. I wouldn't drop it too low on the price.maybe be competitive within 10-20 bucks. Good Luck
If people are already buying it at twice the price and it's the same product,then they would probably buy it at half price.
Yeh, you dont want to price too low or too high, this will price you out of the market. The best thing would be to price $30-$40 below the market price i.,e. what everyone else is selling for. This way people will assume your just cheaper than everyone else rather than lacking in quality.
chances are pretty good that it would be a big hit if its a known brand. people will already know the name and therefore will not think it has lower quality just because of the price. if it is an unknown brand though, then they may think it has lower quality because they are not familiar with it.
Price is only an indicator of quality in some cases, and i thinking training courses would fit that criteria. You will have to back up the quality in other ways e.g. display your qualifications or accreditaions
Maybe, maybe not. Price can communicate value or prestige to the consumer. Yours may not be a product that consumers are status conscious about. Many manufacturers set pricing floors so their product maintains prestige, mostly luxury goods. Price is only one way to communicate quality to your target market. Marketing 101 teaches the five P's Product, Price, Place, Packaging and Promotion. Can you alter the product to it is clearly of equal quality to the competition? Price we have discussed. Place, where you make the product available can communicate quality such as when a hair care product is available only from salons. Packaging, well let’s just say you can gift wrap garbage and double the price. Promotions or advertising also communicate quality. Do you run your ad in some magazine only snotty yuppies read or Pick-ups and Gun Racks Quarterly? You may pull in if you see a nice clean looking restaurant with a nice lighted marquee sign in front advertising 85 cent burgers but you may choose to pass on the same offer from a hand lettered sign in front of a run down looking dump. One says, "yummm, cheap eats" the other you think after the $850 hospital bill for food poisoning it will not be such a bargain. examine your venture and decide you can use the other four P's to communicate quality so the consumers thinks it is a good deal and not too good to be true.
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