It's natural to have questions about pricing. Although statistics show that customer experience is gaining ground in the purchasing decision , price remains a crucial variable.
An example of the impact of price on sales volume is the sales that take place every year on the last Friday of November. The well-known Black Friday generates a significant part of revenue in many companies.
According to Statista , in 2018 the guadeloupe email list increase in sales that occurred during Black Friday exceeded by 663% the average sales day in the same organizations. The price factor was decisive for this result.
In another study conducted in 2020, 93% of respondents said they compare prices online before buying a new product. And 95% say they make their purchasing decision based on this comparison.
The same survey reveals an interesting fact: 25% of these customers compare prices again after completing the purchase. This comparison can even lead to the return of the product, if the price is not competitive.
So, how do you determine the fair price for a product? In this post we show you one of the most commonly used formulas to calculate the cost of sale: cost/sale price .
Meaning of the variables cost and price
What is the cost?
Economipedia defines cost as the “ value given to the consumption of production factors within the production of a good or service as an economic activity. ”
This concept, also known as cost , encompasses all the expenses incurred by an organization until making the service or product available to the customer .
Price is one of the four variables that make up the 4Ps of the marketing mix . It is defined as “the expression of value that a product or service has, expressed in monetary terms or other elements of utility.” ( Marketing Free )
In practice, the price is the amount that the customer pays the seller to enjoy the benefits of being the owner or usufructuary of the product or service.
Price is a fundamental economic indicator that helps maintain the balance between supply and demand in the market. It is a variable with a high impact on production, consumption and sales .
