Every business is one-of-a-kind. You have a unique mission statement, values that set you apart, and goals that will help you make a name for yourself. But there is one question that all businesses have in common: how much do you sell your products for?
There are two main strategies for this: high-selling and low-selling. But which strategy sells more? Learn the pros and cons of both high-selling and low-selling products—as well as how to make the right strategy work for your business—with this guide.
High-selling means selling products at a higher price, which means you get more profit per transaction. However, the higher price point could also mean lower product turnover and a reduced volume of sales. Businesses should be careful with high-price selling. If the price point keeps you from selling enough products, you might have to contend with unsold inventory that takes up space, slows down processes on the back end, or leads to costly product waste.
Tips for High-Selling
Will high-selling work for your business? To determine this, you need to first consider who your customers are. Are they willing to pay more for high-quality products? Are they looking for high-end materials, greater durability, or other traits that raise prices? High-price selling is most successful when you can center your brand around dependability and promote your products as the high-end option that lives up to the price.
Focus on the customer experience, too. Great service, clear communication, and fantastic client care lead to customers returning again and again, even with a higher price. Tools such as attractive digital displays can elevate your customers’ experience through better communication, accessible information, and a more personal connection with everyone who enters your store.
Low-price selling is the flipside of high-price selling, which means it involves selling more products at a lower price. The cost leads to higher product turnover, but it generates less profit per sale.
Successful low-price selling keeps you competitive and can help increase your revenue in the face of economic low periods. However, if you don’t sell enough products, it can lead to dangerously low revenue.
Tips for Low-Selling
Like with high-selling, branding is a big part of successful low-selling. Establishing your business as a reliable place to get a great deal will keep you on customers’ radar when they’re looking for good prices. Sales and other promotions are also excellent ways to bring attention to your inventory.
However, it’s also important to keep costs down when you’re low-selling. Review sourcing methods, inventory management, and other processes. This strategy will help you minimize waste, improve efficiency, and create a more cost-effective process that will help boost profits even with lower prices.
When choosing between high-selling and low-selling, the question isn’t which strategy sells more. Instead, ask yourself which strategy will work best for your business model. With these tips, you can make an informed decision and choose a promotional strategy that helps you attract customers, improve profits, and find greater success for your business.