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Pearl 1: Pricing Strategy
- Do not assume that if one competitor sells the very same thing as you for a low price, that you have to have the same price or lower.
- Rather, realize that the concept of having a higher price or lower price is essentially irrelevant in this one aspect.
- What should be of importance to you is your customers maximum spending limit is on your item.
- For instance, if you have a competitor that is willing to sell "Item A" for $20 bucks and look at eBays History and see someone recently paid $40 bucks for it, you should automatically set your price to be closest to the highest price a previous customer was willing to pay for the item, or $35 to $40.
- This pearl alone would save about 90% of the sellers out there, as most simply do not understand this valuable concept. They assume that the lowest price wins. That is simply not true. I have seen items sell faster at higher prices.. It all depends, as the circumstances surrounding any order are complex.
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