By M. Suyanto,
The fourth step in selling products on the internet is to understand the price of products that we sell and the number of products sold within a certain time. Relations between them are usually referred to as product velocity. The more products we sell, the greater the velocity of his product. We can make the relationship between price and amount sold each week. Typically the greater the desire to sell in quantity, then we must set a lower price, otherwise the higher the price that we set the less the amount of products we can sell.
Average Sales Price can also be narrowed by stating in an item that contained the so-called Stock Keeping Unit (SKU) which is a term often used by retailers off-line to indicate a unique item in the inventory. For example, Seller A has three red shirt two sizes XL and L sizes are blue with no one fruit, then SKUnya only two, namely SKU1 is a red shirt (number 2) and SKU2 is blue shirt (number 1) . Key concepts to be understood without having to work on campaigns or do something special demand in the market or putting the various SKUs are fixed, will not alter the demand in period 30 days to 60 days. Another variable that works is the supply, then we must also control the supply, although this offer is also controlled by our competitors. This information is a weapon we can use to make important decisions based on our objectives.
For example, Seller A sells 10 units of the SKU of each month at a price of $ 150. Seller A has a target to increase profits each month. SKU costs on the volume of 40 units cost $ 100, but if it can increase sales of more than 100 units per month, the cost drops to 85 USD SKU. Then this information can be created various scenarios. The first scenario focused on high margin, we sell it for $ 150 sold 40 units at a cost of 100 U.S. dollars, the gross margin (150 USD - 100 USD) x 40 = $ 2000. The second scenario focuses on current margins, we are selling at a price $ 120 sold 80 units at a cost of $ 100, then the gross margin ($ 120 - $ 100) x 80 = $ 1600. The third scenario focuses on low margin, we sell with a price of $ 100 sold 160 units at a cost of $ 85, then the gross margin ($ 100 - $ 85) x 160 = $ 2,400. By understanding the speed of product / price, and testing enables us to get the approximate number of SKUs that we can sell and vulume we expect. By estimating the price and volume of products we will help engaged in preparing resources and be able to predict margin products that we get each month. If the product is not made by us, then we can negotiate the price with the source of our products with pricing based on sales volume.
For example, Seller A sells 10 units of the SKU of each month at a price of $ 150. Seller A has a target to increase profits each month. SKU costs on the volume of 40 units cost $ 100, but if it can increase sales of more than 100 units per month, the cost drops to 85 USD SKU. Then this information can be created various scenarios. The first scenario focused on high margin, we sell it for $ 150 sold 40 units at a cost of 100 U.S. dollars, the gross margin (150 USD - 100 USD) x 40 = $ 2000. The second scenario focuses on current margins, we are selling at a price $ 120 sold 80 units at a cost of $ 100, then the gross margin ($ 120 - $ 100) x 80 = $ 1600. The third scenario focuses on low margin, we sell with a price of $ 100 sold 160 units at a cost of $ 85, then the gross margin ($ 100 - $ 85) x 160 = $ 2,400. By understanding the speed of product / price, and testing enables us to get the approximate number of SKUs that we can sell and vulume we expect. By estimating the price and volume of products we will help engaged in preparing resources and be able to predict margin products that we get each month. If the product is not made by us, then we can negotiate the price with the source of our products with pricing based on sales volume.
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