Chapter 119: Pricing of Range Hoods
Regarding the pricing of the excellent range hood, it was decided after discussion between Su Rui and Shen Qing. Pen, fun, and www.biquge.info
Su Rui and Shen Qing both believe that the excellent range hood has not yet opened the market and has not been accepted by consumers, which is not conducive to selling at a high price.
If the price is too high, there is no way to attract consumers, and naturally there is no way to open the market.
Therefore, the price of this excellent range hood should not be too high, it must be within the acceptable range of consumers, but the price should not be too low.
If the price is too low, it will leave consumers with the impression of cheap products, and the promotion of excellent brands is not a good thing, most consumers break the association between cheap and defective products.
Moreover, if the price of this excellent range hood is too low, there is no profit at all, and this is even more inappropriate for companies in urgent need of capital.
For this reason, the pricing of excellent range hoods is a very important issue, and it must not be sloppy.
Before pricing, Su Rui has done a lot of research and knows that some big brands of range hoods are priced from thousands of yuan, and it is not uncommon to see range hoods of several thousand yuan, and even many range hoods of more than 10,000 yuan, which are all marketable.
Of course, some range hoods that have no brand awareness, or some copycat range hoods, are also sold very well, five or six hundred, three or four hundred, and even one or two hundred range hoods are sold in the market.
For example, the factory that Su Rui is now acquiring, the range hood produced by its predecessor, its market price is two or three hundred yuan, which is very cheap, but the effect and quality can be imagined, such a range hood, good can be used for a few months and half a year, bad luck, it may be broken once a month, and it is more expensive to repair it once or twice than to buy a new one.
At present, in the product of range hood, it is still a penny for every penny, and if it is too cheap, it is naturally impossible to have any good effect or quality.
However, it is impossible for Su Rui to have a low price, if he only sells for two or three hundred yuan, there will not be much profit, such a good product, if it is still a low profit, then I am sorry for the faith value consumed.
After thinking about it for a long time, he and Shen Qing decided that the price of the excellent range hood was 600 yuan, which is a moderately low price, not too expensive, but not too cheap.
The market price of an excellent range hood is 600 yuan, with a five-year warranty, such a high warranty period, which also shows Su Rui's confidence in the quality of the range hood.
According to the production cost of the excellent range hood plus the cost of publicity, as well as all the costs including taxes, a sell for 600 yuan, the profit is more than 300 yuan, that is, 50% of the profit margin, if the output is high, the cost can be further reduced.
Fifty percent profit margin, which is already very good, but the premise is that there is sales, if there is no sales, no matter how high the profit margin is, it is a loss of money.
However, the price of 600 yuan is only equivalent to the price of low-end products of well-known brands, as long as the effect is good and the quality is trustworthy, it is still very competitive in the range hood market, and it should be able to be sold.
After the pricing was decided, the Excellence range hood officially began to be advertised.
Under Shen Qing's arrangement, the whole company went into battle.
In order to promote the range hood, almost all employees left the office and went to various places to spread the word.
Since the company does not have a fixed sales channel, it can only use direct sales in the early stage, and can only cooperate with sales channels after it has become famous.
Shen Qing rented a venue in several lively places to demonstrate the excellent range hood on the spot, hoping that through this method, consumers can see the advantages of this range hood.
Su Rui did not sit in the company, but also went to the promotion point to observe, he found that consumers are still very interested in this new type of range hood, but there are still not many people who really want to buy it.
However, the reason why these consumers hesitate is mainly because the excellent electrical appliance company is not famous, so that these consumers can not be trusted, worried that the quality of these range hoods will be bad, and they will break down quickly when they buy back, and they will not be able to find the manufacturer to repair them.
It is these worries that make most consumers hesitate, if it is only one or two hundred yuan range hood, you can also try to buy a new model, but the price of six hundred yuan makes them hesitate.
In this regard, Su Rui has no choice, this is human nature, and this is also what most new brands will encounter.
The early promotion of new brands and new products is the most difficult step, and it is also a problem that stumps many new companies, and how many new companies are unable to complete the accumulation of this stage and go out of business.
Fortunately, the excellent range hood has too many advantages compared with similar products, and they are obvious highlights, and these advantages can become convenient for promotion.
Therefore, in the early stage of promotion, not many people bought it, but there are still some after all.
As long as one consumer is attracted and a superior range hood is sold, Su Rui believes that this consumer will attract ten consumers after using it.
Because he believes that excellent range hoods are enough to satisfy consumers, he will let people who buy in the early stage take the initiative to recommend them to relatives and friends, so that they can continue to attract more consumers.
Therefore, although the early promotion effect of excellent range hood is not so good, Su Rui is still confident.
That night, he was thinking about ways to promote the excellent range hood.
The funds of the excellent electrical appliance company are too short, and there may be problems at any time, Su Rui doesn't want the company he worked so hard to open and go bankrupt in less than a month.
To solve this problem, there are two ways, one is financing, and the other is to sell the range hood as soon as possible, and strive to return the funds as soon as possible.
The first way, Su Rui will not consider, with the advantage of excellent range hood, there is still a great chance of success in external financing, but this will inevitably give up part of the shares, and for the current company, the transfer of shares is equivalent to a cheap sale.
Moreover, he doesn't want too many people to meddle in the company, and there are more unnecessary shareholders to point fingers, which is why he does not accept financing.
This time, Su Rui can only choose the second solution, as soon as possible to sell the excellent range hood, only if the sales are enough, can solve the company's dilemma, but this step is not easy to take.
It's just that the publicity effect of the past two days is not so good, and consumers still have a wait-and-see attitude towards excellent range hoods, and they are not so eager to buy.
Therefore, it is still very difficult for Su Rui to sell the range hood in exchange for funds.