The price that any business owner put on its products plays a vital role in the selling process and the way customers react to a certain product as well. It will all depend on the understanding of the consumer how well your product does in the market. For instance, if the consumer feels like a certain product with a lower price and better quality is there they will surely feel inclined to that product. This blog is going to tell you about the mindset of an average consumer as they look for the price when they go for shopping.
Let us begin with price hike for any product. It is one of the trickiest methods that you can use in order to gain or lose your customers. When you raise the price of any product you can either lose your customer to your competitor as he is selling the same thing at a lower price which is quite lucrative for any customer. Moreover, you can even lose your customers permanently in this process as some of customers may feel a little uneasy with this whole process. On the other side, if you have a high demand for any product and you have no competitors this can get you more profit and more credibility as some customers even associate high prices with high quality as well.
Starting with a lower price can have multiple effects on consumers as well. The price conscious segment of the consumers will grab this opportunity to get the best of your product as they stock up the necessary amount of your product at a lower price. While there will be a group of consumers that will feel suspicious of the product quality and might end up getting some other product as well.
Due to this is really important that you take your customer’s behavior into consideration before you decide to hike or lower the price for any product.