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If your first primary goal with a product line is that it will turn a profit per sale from the start, then you kinda have to start with the cost of goods sold a
by anonymousab 2y ago
If your first primary goal with a product line is that it will turn a profit per sale from the start, then you kinda have to start with the cost of goods sold as your baseline. If a customer pays you less than the product or service costs to provide, then by definition you priced it wrong for that initial / first step goal.
- fragmede 2y agoYou can make up whatever goal you want and succeed or fail at it, that doesn't have any bearing on the vibes-based pricing being how to price things. What you'd need to somehow show is that a) you can even sell the product at that price, and b) that setting the price be higher or lower wouldn't result in greater total profit. Naturally, you do want to make profit from each sale, but first off, can you, and secondly, how much? If it's something that took years of R&D to develop, then you'll want to amortize that over a longer period of time, and not try and recoup that the instant you have something to sell. If you're dropshipping someone else's product, then you can't price it all that high because your competition is also going to be pricing it with fairly low margins. (Or they're not, and you can undercut them.) Interestingly, in support of vibes-based pricing, and in direct contraction of Econ 101, sometimes raising the price on something increases it's percieved value, as being too cheap makes it seem like a worse value or lower quality.