Chow Tai Fook innovatively launched the sales policy of "one price for jewelry", solemnly stating that the product cost plus reasonable profit is the price of the product. Through the business model of "small profits but quick turnover", we can save consumers' bargaining time with low prices and let customers really experience the real feelings.
In order to reduce operating costs and better participate in market competition, Chow Tai Fook has also established its own jewelry processing factory to produce all kinds of jewelry it sells, reduce intermediate links and minimize production costs.
Factors to be considered in product pricing
1, product quality problem
The core question to be considered is what role the product plays in the product group of the enterprise: whether it is a volume product or a profit product, an image product or a complementary product.
2. Positioning of target consumer groups
Which group of people are using your new product, children, the elderly, men and women, family consumption, group consumption or China consumption? Generally speaking, the prices of products used for children, women, group consumption or China people's consumption are correspondingly higher.
3. Choice of channels.
Every product has to go through sales channels and reach consumers, so the channel choice of a new product also determines its price.