Different steps that can be taken to get the right pricing for customers?kwsmedeveloper
When establishing a new business setup in Dubai one of the biggest factors, the manufacturers need to consider, is the type of audience the product or service will be directed towards. Determining the audience choice can help immensely when designing the product. However, there is a fine line between wants and needs.
The type of class a consumer belongs makes a huge impact on affordability. The product or service usage and quality will also make a huge difference in terms of consumers. For example, if a consumer belong to a lower class, they are expected to purchase the product or service according to its usage.
If the product purchased by them is of bad quality, the consumer will end up spending more money on replacing the product. Therefore, they can be expected to make a one-time invest choice which means buying a better quality product. This is usually the case with products or services that can be used for a long time period.
Different ways of pricing products correctly
Before a product can be designed the company needs to decide the target audience for the product. A thorough analyzation of the market can help determine the type of products purchased by the different kinds of consumer classes. Marker penetration can be conducted through surveys, interviews, observing the consumer behaviour etc.
Furthermore, it is important for a business setup in Dubai to keep a check on the prices of organizations producing similar products. If the price of the product is higher than that of the competitor, the consumer may opt for the lower priced product. However, having a lower price rate can also lead the consumer to opt for the competitors’ products. This may be the case because low price rates often indicate bad quality of products.
Another step that need to be kept in mind when pricing a product is to calculate the manufacturing price. There are many costs to take into consideration before a price can be decided. The product parts, suppliers, manufacturing of the product are a few of the calculations that make up the product price. Without covering the costs of production, the organization will suffer from major loss. Moreover, a profit margin needs to be determined in order to create earnings from the business.
A common strategy of creating a customer base is by selling the products with the little or no profit at all. When the trust of customers have been gained, the producers slowly start raising the prices of the products. This help widen the profit margin as well as maintaining the customer base.
Lastly, the price of the products will also be based on the laws being implemented in the country. For example, due to the Value Added Tax law in the UAE, businesses need to report a fixed amount of threshold. If the business in Dubai meets the VAT requirements, they are to register as for VAT. However, if the business does not register for VAT, the turnover of the business is assumed to be low. This can cause the business to lose customers.
Services that you need
One of the biggest factors to think over when producing products and services is the price and the audience the products and services are directed at. For entrepreneurs and new business owners, it important to research the markets and the trends before they can determine the pricing and the audience. This is where professional business consultants come in to help. Due to the nature of their work, consultants are well-versed in the different types of customers present in the market.
At KWS ME, the business consultants Dubai help analyze the views of their clients and help them establish their businesses, accordingly. The business consultants Dubai not only provide assistance throughout the business set up but also educate their clients about the market and the culture of the UAE. With the help of KWS ME, people are able to set up their business in Dubai in an inexpensive and efficient manner.
Our experts are always ready to answer your questions. Send them to us through email or call us for help.