Cost-oriented Pricing Methods
Total Cost Plus Pricing: Calculate the production cost of folding doors, including raw materials, labor, manufacturing expenses, etc., and then add all the costs related to the product, such as transportation costs, tariffs, overseas warehousing costs, and platform fees. After that, determine the price based on the expected profit margin. The total manufacturing cost of materials needs to be evaluated, and only after that can the production and manufacturing be carried out.
Variable Cost Plus Pricing: Based on the variable costs of folding doors, such as direct materials and direct labor costs, add a certain variable cost markup rate and the apportioned amount of fixed costs to determine the price. This method is more suitable for short-term pricing decisions and can help enterprises cope with fluctuations in market demand. When the market conditions fluctuate, prices are also set according to the changing market conditions, following the market rules to make reasonable pricing. Since market changes are unpredictable, some methods and techniques should also be used to set prices in order to obtain a higher profit margin.
Competition-oriented Pricing Methods
Going-rate Pricing: Research the mainstream price levels of similar folding doors in the overseas market, especially the prices of major competitors, and then set the price of your own products at a similar level. If the quality and functions of the competitors’ folding doors are similar to your own products and the price is $100, then you can set the price of your own products between $95 and $105 to maintain competitiveness. You can also study your peers to see how to set reasonable prices and how to win a larger profit margin as much as possible. You can also study and imitate how competitors set prices and learn from them to avoid pitfalls.
Competitive Differential Pricing: If the folding doors of an enterprise have obvious advantages in terms of quality, functions, brand, etc., the price can be set appropriately higher than that of competitors; on the contrary, if the product has certain disadvantages, the price needs to be lower than that of competitors. For example, if an enterprise’s folding doors adopt more advanced soundproofing materials and more convenient folding techniques, the price can be set at 20% higher than that of competitors; if the material or craftsmanship of the product is slightly inferior, the price can be reduced by 10% – 15%.
Demand-oriented Pricing Methods
Understanding the Needs of the Target Market: Through market research, understand the demand intensity, price sensitivity, purchasing power, etc. of consumers in different overseas regions for folding doors. In economically developed regions, consumers are relatively less price-sensitive and pay more attention to the quality and functions of products, so the price can be appropriately increased; while in economically less developed regions, more affordable prices need to be set. For example, high-quality and multi-functional folding doors can be priced higher in developed countries such as Europe and the United States; while in developing countries’ markets such as Southeast Asia, the prices should be relatively lower.
Understand the target countries for selling folding doors. For example, in the United States, once you clearly understand the market conditions, you can set prices better according to the market conditions, because each country has different pricing for folding doors, some are expensive and some are cheap.
Value Perception Pricing: Set prices according to consumers’ perception of the value of folding doors. If the product has a unique design, a good brand image or high-quality after-sales service, consumers may be willing to pay a higher price. For example, a folding door with an intelligent control function can bring more convenience and security to consumers, and the price can be set according to consumers’ perception of these additional values, and the price may be 50% or even more higher than that of ordinary folding doors.
For the sales of folding doors in the United States, folding doors are relatively expensive because the United States itself is a technologically developed country. If it is in some poorer countries in the Middle East, then the folding doors will be relatively expensive to sell.
Other Pricing Strategies
Psychological Pricing Strategy: Use consumers’ psychological characteristics to set prices. For example, use the mantissa pricing method to set prices at $9.99, $19.95, etc., giving consumers a feeling that the price is lower; or use the integer pricing method to set prices at $100, $200, etc. for high-end folding doors to show the high quality and grade of the products.
According to different customers, prices can also be set according to the market, because the market conditions for folding doors in each country are different. Adopting psychological pricing is a kind of psychological game in sales. You can learn relevant negotiation skills during negotiations to win the negotiations as much as possible and obtain a larger profit space.
Regional Differential Pricing Strategy: Consider factors such as the economic level, consumption level, and market competition status of different countries and regions to set differentiated prices. For example, in the European market, due to consumers’ higher requirements for environmental protection and quality, the prices of folding doors can be relatively higher; while in the African market, the prices should be more competitive.