” One of the most exciting and nerve-wracking aspects of retail is determining what price to sell your products at. Pricing is both an art and a science that requires an experimental attitude coupled with an intuitive feel for how you want your brand and by extension your products to be perceived.
Price your products too low and you might get a ton of sales but you might find yourself going under when you tally up your expenses at the end of the month.
When you price your products too high, you might give off an aura of luxury, prestige, and exclusivity thereby attracting a more well-off clientele which is smaller in number but makes up for volume by purchasing your products at the higher price. However, what if you’re in an area where the demographic is especially price-sensitive, then what will you do?
Ultimately, you’ll have to decide whether you want higher prices for your products and a lower volume sold or lower priced products and higher volumes sold, and which direction will enable you to achieve profitability.
Keep in mind though that when you have a range of products, you can sometimes risk lowering prices for one as long as you also sell products that are marked up higher. ”
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Source : www.Shopify.com