Focus On Your Sales Turnover and Less On “Favourable” Pricing

Many small businesses are always tempted to focus more on pricing rather than sales turnover. Sales turnover in simple term means the amount of business transacted over a given period of time. The biggest hindrance to frequency of sales of products especially in the retail sector is overpricing. The temptation to want to make more profits per product sold at a time is always there, but a good business owner/manager must first of all understand the psyche of an average buyer in the market. The era of monopoly is almost at extinction, competition is the order of the day, hence you cannot afford to slack as a sales person. Why buy the same product at higher price when you can get it even if it is a dollar less somewhere else? .Some business owners especially in retail sector complain of low patronage while some of their competitors are recording massive sales at the time they are complaining. What they fail to understand is that there is something the competitor is doing especially the area of pricing. If your product is a dollar or half a cent higher than your competitor, you will run into trouble the day your customers get to know because they will shift their loyalty to your competitors.
In business, it is better to have high sales turnover than to stock your products for weeks and you probably sell one or two in a week when you could have sold about two hundred just because you are overpriced. Your competitor that is ready to make a profit of $10 from his sales would have sold thousands while you may still be struggling to make just a deal because you want to make $20 profit.
Which one is wise? The competitor who is selling at a lesser price is making better profit while you laid-back trying to make a single deal.
As an entrepreneur, you cannot afford not to keep tab of what your competitors are doing especially in the area of pricing. There are many ways to know, one of which is by doing window-shopping at their stores or in form of enquiries for people in service sector. Although there is no one way to “spying” your competitor, you must just find a way to monitor them so they don’t outsmart you.
If you have more idea on this topic, please feel free to add more on the comment section.

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