View Full Version : Market research
18-05-2005, 09:05 AM
I have been looking into a business idea and due to having contacts in the manufaturing industry I have had no problems in getting my product produced.
I am now trying to decide on a pricing strategy and need to do some research into how much other companies charge for their product and also how much large companies pay for the product. These companies would be companies that sell upholstery products such as Ikea, Laura Ashley, Argos etc.
In light of the above, I have 2 main questions:
1. How can I find out how much these companies pay for their product? Do I contact their buyers direct?
2. How can I find out what manufacturers charge the above companies for their product? Would they reveal such information?
20-05-2005, 09:47 AM
I'm not sure if the manufacturers will provide such information, but, at the same time, I'm not sure how relevant it is anyway. Argos will be substantially cheaper than Laura Ashely, who in turn will be cheaper than someone like Barker and Stonehouse. The key is knowing your audience - how much do they expect/are they prepared to pay? Which group of consumers are you targeting? Who is your 'typical' customer? Knowing such information will be of great benefit when it comes to your marketing, advertising, etc.
20-05-2005, 11:16 AM
Thanks for your reply.
I will be targeting a range of customers - those at the cheaper end such as Argos and then those at the higher end such as Laura Ashley etc. Of course the way I market these products will vary and I will research the company.
However, it is finding out the "how much do they expect/are they prepared to pay" I am getting stuck on. As I do not know how much they typically pay I would not know where to start. Is it usual for buyers to give me a price bracket or would I name the price and take it from there?
20-05-2005, 11:21 AM
I think it's a case of checking on your competitors prices - this can easily be done by getting hold of catalogues, or even checking their websites. Then charge accordingly. However, don't undersell your products - if people like them, then they'll be prepared to pay for them.
20-05-2005, 02:36 PM
I'd back up what's been said here already. My rule of thunb: "Charge what the market will stand." You have to know what your cost are, and it's a good idea to work out what your lowest selling price is. But these do not have to bear any resemblance to what you really sell things for.
Price is a quality indicator too. A Sony TV cost more than a JVC, so you conclusion is that the Sony is a better product. Prospective customers will use your prices to judge your quality.
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