How to Build Your Small Business Customer Base

929 WordsJan 31, 20184 Pages
When you decide to start your own business every person wants it to be successful. When deciding what to offer as a product to consumers a lot of research should be done. You want your product to sell, you want to choose a product that you can give the impression that ‘what would they do without it!’ Most products are developed based on consumer need. If a consumer puts the idea out there that they wish a certain product was able to do one thing or another, a company designs it, corners the market, until the other companies catch up and give them competition causing price changes. According to an article written by Matt Leeburn named ‘Decoy Pricing: How to make consumers choose the product you want to sell.” Decoy pricing is a method of strategically pricing products so that consumers will choose the one that you most want to sell to them. This can work well if you have a certain product that reaps a greater profit margin or if you are over stocked on a certain item, and you don’t want to start discounting. The method itself is quite simple as it plays on one of the factors humans use in decision making: relativity. Pricing is also determined by how many companies are producing a said product. Let’s use the DVD player as an example. In 1997 the DVD player made its debut in the United States made by Japan’s Sony. The cost of DVD players was high in the beginning because Sony had cornered the market. As
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