Before the Internet, people were limited by geographical distance, resulting in opaque product prices in the market. Therefore, product pricing and water cup pricing were determined based on their own pricing habits and profit margins. Nowadays, the global Internet economy is highly developed. If you search for any product, including various types of water cups, you can see the price comparison of the same model on the same e-commerce platform. You can also see the price comparison of different models of water cups with similar functions. Now the prices are highly transparent. Regarding the matter, are water cups priced? What factors does pricing mainly depend on?
On some world-renowned e-commerce platforms, when comparing water bottles of the same model that are more than 95% similar, we will find that the prices are also different. The lowest price and the highest price may often differ several times. Does this mean that the lower the price? The product is worse and the product with higher price is better? We cannot subjectively judge the quality of a product based on price, especially ordinary consumers. If they do not understand the materials and the process, if they only judge the quality of the product based on price, it is easy to end up buying a product that is worth buying. The pearl thing.
Taking water cups as an example, pricing factors include material costs, production costs, R&D costs, marketing costs, management costs and brand value. At the same time, production technology, quality and production quantity are also factors that determine pricing. For example, if the material cost of stainless steel thermos cup A is 10 yuan, the production cost is 3 yuan, the research and development cost is 4 yuan, the marketing cost is 5 yuan, and the management cost is 1 yuan, then these are 23 yuan, then should the price be 23 yuan? What’s up? Obviously not. We have missed the brand value. Some people say that brand value is profit. This is not completely correct. Brand value is maintained and built by the brand after years of investment. It also includes the brand’s commitment and responsibility to the market. So brand value cannot just be said to be profit.
Once we have the basic cost, we can analyze the price of the product on the e-commerce platform. In today’s situation where operating expenses remain high, a pricing range of 3-5 times the basic cost is usually reasonable, but some brands have significantly higher prices. It is unreasonable to sell at a price that is 10 times or even dozens of times, and it is even more unreasonable to sell for less than half of the basic cost.
Post time: Apr-15-2024