Selling cheap, not always a good solution
When opening a new business, most people look for a way to have a product that could be accessible on the market, a cheapest one; however, selling cheap is not always a good idea or the best business strategy.
It is very common to think that the cheapest the product is you will sell it more, the real thing is that this will make your production cost higher because you will need to sacrifice the price; therefore, your will need to sale per volume in order to get the real cost of the articles and this is not a good long term strategy.
The risk will always be that somebody else gets lower production costs which will kill your business. It is better to sell a product for 100 dollars than 2 for 50 dollars. People will always prefer to save a little money and will buy your product instead of just go and buy the cheapest one.
Another thing is to become your most demanding client; you need to test your product all the time, make improvements to it, and if these work, add those to your offer. Are you willing to use what you’re selling? Is the quality ok? If not, think twice what you’re doing.
Visit your customers; ask them about their needs and their experience with the product or service. No one still believes on the TV commercials, if your product is good they will tell other people and you will have new customers. Recommendation boosts your sales five times more than a printed marketing.
Grupo Denim, a manufacturing company from Mexico, is a leader on the Mexican market because they sell a lot of denim jeans domestically and abroad, most of the domestic companies think that their prices are really high because they invoice in us dollars and not in Mexican pesos. “We have never been cheap, our prices include the whole service and our quality is guaranteed, this has always been our seal, quality and a great customer service team”, said Salomon Juan Marcos Villarreal, its president.