Higher Prices Rule!!!

Quote:

Originally Posted by Snowman

Ironic, it makes sense though; if the price is too low can that cause suspicion?

As in, “what’s the catch or what’s wrong with it”?

The original listed price WAS too low and did cause suspicion for the prospective buyers who didn't know any better.

In the end the buyers who purchased the property knew a good deal when they saw it.

IMO this is not an isolated case. I think it happens all the time in many if not all industries.

Quote:

Originally Posted by AZBroker

The original listed price WAS too low and did cause suspicion for the prospective buyers who didn't know any better.

In the end the buyers who purchased the property knew a good deal when they saw it.

IMO this is not an isolated case. I think it happens all the time in many if not all industries.

Good point AZ

Start high I say; you can always reduce your price mid sale but putting it up mid sale is almost impossible.

Snowman

Quote:

Originally Posted by AZBroker

A few years ago I took on a commercial listing that had been on the market for one year without an offer. I let the seller know that in my opinion the reason the property hadn't sold was because it was underpriced. He agreed to list the property at 125% of the previous list price. We had two offers within 30 days which resulted in a bidding war and a closed transaction within 90 days.

Wiki says, "Pricing is one of the four aspects of marketing. The other three parts of the marketing mix are product management, promotion, and distribution."

It looks like underpricing is as bad as overpricing.

Quote:

Originally Posted by Marcus

Wiki says, "Pricing is one of the four aspects of marketing. The other three parts of the marketing mix are product management, promotion, and distribution."

It looks like underpricing is as bad as overpricing.

It can be. Correct pricing is important. If you price too low you could be leaving money on the table and potentially hurting your own sales.

Quote:

Originally Posted by AZBroker

It can be. Correct pricing is important. If you price too low you could be leaving money on the table and potentially hurting your own sales.

Good point, AZ!!! I thought, when I was younger, that I was doing my customers a favor by charging lower prices. I soon found out that I was actually hurting my customers by not charging enough to stay in business. Customers don't want to be price-gouged, but they also want you to make enough money to still be in business when they have a problem with your product and need to come back to you for help.

We all know the golden rule right?

He who has the gold rules

I agree Tony, I am finding in my current industry where my product is dearer - I find that my selling my solutions not the price is effective

Quote:

Originally Posted by ozzie

I guess a higher price could easily imply a higher quality of product or service which is exactly what some people want. You may not get many results in the lower income group but could do very well in other income groups.

Snap-On has made a 80 or 90 year business model out of being the highest priced tool on the market "We have to be the best because we are the most expensive." In reality just because you are the most expensive doesn't mean you are the best.

Pat

	#27
Snowboy	I agree Tony, I am finding in my current industry where my product is dearer - I find that my selling my solutions not the price is effective __________________ Snowboy I've come to believe; all my past frustrations were actually laying the foundation for understandings that have created the new level of living I now enjoy.

Higher Prices Rule!!!

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