Is pricing really aggressively in your first year a good, then gradually increasing the price later a good common strategy for most Amazon Sellers?
I launched a product in November of last year. In my category, we’ll call it “Tool bags”. So the tool bag I’m selling is higher end and I want to sell it for $45+. Current price is $40 and we are selling about 125 per month.
We have cheaper competitors. A lot of them actually, and they can sell 400-600 with newly launched products as they are priced $20-30.
Our brand is brand new and this is our first product. Looking at companies like Apple, they never (or rarely) go into a discount strategy.
I’m wondering if I should be worried about lowering the price down to $35 and braking even to try to increase sales volume.
Should I be worried it will turn off previous buyers that bought it at a higher price? Is it going to be difficult to raise the price to $45+ later or should I not be concerned about that?
From my understanding, it seems this is a normal strategy for general Amazon sellers (not the big whales like Apple). Basically, be as aggressive as possible for say 1 year and then gradually raise the price? Is this a normal strategy that works?
Thanks for any help!
submitted by /u/Orion_Oregon
[link] [comments]