In business, poor pricing of products and services lets you miss plenty of opportunities from profits down to deals. In fact, Harvard Business Review stated that even a 1% upgrade in pricing already boosts your profits by up to 11%. So, every item or service for sale must be corrected and updated regularly. Otherwise, extremely high prices make you look conceited. More so, with meager costs as it makes people question your product’s quality. And to ensure that you know your prices too well, spell out all the items, along with their corresponding costs, in a sheet that you can update from time to time. And that document is your price list and sheet.
Have you skimmed through pages of product catalogs or sample brochures from Avon’s cosmetics or IKEA’s furniture? If yes, then you should know that price lists are just a simpler version of such catalogs. Such sheets contain item descriptions and their designated costs. To be more specific, a price list and sheet is a compilation of prices for goods and services that are outlined in a document. And its data is crucial for decision-making if customers wish to buy, businesses prepare a price change—you name it.
Based on a report, a 1% improvement in pricing can boost profits by up to 11%.
Meanwhile, Business Wire mentioned a study about how 80% of Americans compare prices of products online.
On the other hand, Statista reported that in 2016, there were already 209.6 million people in the US who browsed goods, compared rates, or purchases products online at least once.
Whether you are the buyer or the seller, you can make a price sheet. For example, a meticulous consumer can use price lists to compare which products are more affordable. Also, business owners may check the tailored prices of their items anytime from the list. And how the presentation goes in the sheet depends on who created it. Nevertheless, what matters is that the price sheets will be easy to understand for whoever uses those.
From the common saying “spare no expense,” it means you pay for something without holding back, no matter how big the amount is, as long as you accomplish your main objective. And just like price lists, they are made for a purpose too. In fact, it grants you a series of benefits that explain why lots of people create and make such sheets. And in this section, identify what you can achieve with price lists by recognizing its common benefits.
Now for the main course, how do you create the price list and sheet? The lists may vary from one user to another, but there are common factors that you can see from excellent price sheets aside from the items and their corresponding rates. And rest assured that the process of making a list is not that complicated as you only need to follow these easy steps:
First things first, are you making a price list for you to use or for others? Determine your audience because maybe you created a list that is user-friendly and helpful on your part, but not for your clients who wish to view the prices. So if the price sheet is for customers to see, then make it easy for them. Also, know your purpose. Is the price sheet created for your grocery shopping list, restaurant business, or any other function? Label your sheet correctly.
It is essential to state what products and services you offer clearly. If your business runs with fast-food products, then don’t just put the “fries” label and its price in your list. Be specific. Do you have other flavors for fries like cheese, sour cream, and barbecue? Include them. Also, the cost differs according to size, so indicate if a specific price refers to the small, medium, or large fries. And for businesses that deal with services, like salons, identify your services carefully. Maybe you just wrote “nail service” without clarifying if it involves trimming, nail polish, or both. And specify if the service is actually for people because there are also salons for pets.
The general rule is that the item or service written in the pricing list should be beside its price. Otherwise, people would be confused as to which products some rates belong to. And to do this, aim to review the format of your template if the product names and their corresponding prices are listed beside or near each other. And here’s a tip: always include the rows and columns of lines from tables and charts. That way, anyone who views the list would no longer be confused in identifying prices since a product name and its assigned price will be in the same line.
If your sheet is enlisted with lots of information, then it works best to categorize your details. The categorizing process aims to keep the presentation of your list to be organized. Take a cosmetic line enterprise, for example. Your pricing sheet might look disorganized for merely enumerating all products without a sense of category. Instead, group your products according to particular labels. You could arrange your items according to lipsticks, mascaras, palettes, and so forth. Or perhaps, you categorize based on colors where you group all the red glosses, lipliners, and makeup brushes in the “red” label.
Lastly, conduct a final evaluation if your sheet is impressive enough. If that pricing list is understandable, organized, and informative enough, then you are on the right track. But don’t just stop there. Your next task is to monitor and update your list regularly. There might be instances where products are on sale or would increase. Therefore, you have to change your list and update the product rates to their current prices.
The price list and sheet can be referred to by many names like the price catalog, price guide, price comparison sheet, and product pricing list. Although the names differ, they are still somewhat synonymous.
First, know the total cost of the products bought. Next, divide the total amount by the number of units bought to determine your cost price. And to determine the final amount, it is as easy as the selling price formula, which is to add the cost price and the profit margin.
Generally, there are five known pricing strategies, and you have to choose which strategy suits best for your application. And the pricing strategies are the following:
According to Katharine Paine of News Group, “The moment you make a mistake in pricing, you’re eating into your reputation or your profits.” Paine’s quote summarizes how pricing, indeed, is vital to businesses. Who knows? Your chance to increase revenues might not happen because of errors in pricing. Thankfully, a detailed price list gives room to review every price and correct any mistake anytime. So from the highest to the lowest amount, make each value count.
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A price list is a comprehensive document that outlines the prices of products or services offered by a business. It helps customers understand the cost of items and facilitates…
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