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How To Price Products For Resale

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Setting a price for resale, an important part of marketing, can be quite a tough task. If your prices are too high, you might not get many buyers. If you set your prices too low, buyers are going to question the quality of your product and you still might not get sales. So, you need to ensure that the prices you set for resale are correct. In doing so, buyers will know that you are charging a fair price and will be ready to purchase them. Here’s a guide on how you can price your products for resale.

Factors Influencing How to Price Your Products for Resale

There are several factors that influence your putting a price on a product for resale, which are:

Cost of products
Overhead
Competition
System of distribution
Wages
Your desired return on investment

Besides these, you need to cover basic, direct, and fixed costs, as well as income and profit.

Fixed costs: Overhead is a fixed cost that has to be taken into account. For instance, you need to pay the telephone bill regardless of how much sales are made. If sales increase, overhead costs may increase too. It is recommended that you do bookkeeping to keep track of these costs. The other fixed costs are marketing expenditures, professional fees, bank charges, and transportation and business permits.

Direct costs: This is associated with the sale and delivery of a particular product. When reselling a product, you need to consider the original price of the product and the cost of shipping it to you, repackaging, and labeling for resale.

Income and profit: Most people confuse these two terms. Income is the amount that you trade your time for. Profit is the return on an investment and the incentive for the numerous risks that businesspeople take to start and operate their businesses.

Pricing New Items for Resale

There are several approaches that you can take for setting a price on a new product for resale.

Cost-plus approach: You simply need to multiply the cost of your product by a markup factor. For instance, if a product is $25, and the markup factor that you have applied is 100%, then the retail price would be $50.
Commonsense approach: You need to consider the sales value of a product when setting a price. For instance, if you purchase a lighter for $1 and sell it for $3, your markup is 300%. However, for something that is larger, like real estate or a car, you might only earn a meager percent on its resale. In other words, you need to apply your common sense when pricing products for resale.

Research approach: If you are a small buy-and-sell operator, the best way to price a product is by carrying out research in the marketplace. Learn about what the same products are being sold for, marketing techniques for their sale, and the target audience. Some of the techniques you can incorporate are:

Go online to marketplaces like eBay to research prices.
Search through ads in newspapers, flyers, and magazines for prices.
Subscribe to product catalogs for cost information.
Consult with other retailers to find out how much they are charging.
Go mystery shopping to retail stores, and make comparisons in prices.
Ask suppliers.

Pricing Used Items for Resale

Setting a price for an item that has been previously owned for resale can be easy if you follow the research approach, as was done for pricing new products. You can make mystery-shopping comparisons and online searches, read classified advertisements, and more to determine the market value of a particular product. Besides that, you can also:

Purchase price guides: To set a price for expensive products, like boats, cars, and recreational vehicles, you can purchase price guides. These guides give a description of the product, state the condition of the item, and give a value based on the above criteria.

Have professional appraisals: Having professional appraisals performed on products of a high value helps to substantiate the price that you want to set. As this method is quite expensive, you will need to include this in your selling cost.

Create a sliding-condition scale: In perfect conditions, products are set to a price that is 70% of the new cost. Those items that are still saleable but have passed their days of glory are priced at 30% of their new price. However, there are some items that retain their value better as compared to others.

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Buying Tulum Real Estate ‘

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While Tulum real estate is currently one of the most important areas for opportunities in investment, both inland and condos, it is for this very reason that buyers need to be working with an experienced and qualified Mexico agent.

In the past couple of years, real investment in Tulum has taken a focus on taking advantage of the expected tourism and community growth boom, both closely tied to the appearance of the new international airport, which is currently in the private bidding stage.

Many investors and soon-to-be retirees are buying land, both for building purposes and simply to wait for the appreciation to raise the unimproved property value. Other buyers are considering condos, which are currently very well priced, and offer good potential for vacation rentals, being close to the beach, Tulum’s famous Mayan ruins, and to the services of the town center.

The municipality has also developed an urban growth plan, to help retain and develop Tulum’s unique small-town atmosphere, while allowing for a large amount of new growth.

Tulum real estate is ripe with opportunity. But to know how to best tap into this opportunity, it is important for buyers to work with an agent who is able to help them find a property suitable to their needs within a quickly changing market. Some items to look for in an agent include:

degrees, certificates

training and updates

years of experience in the Tulum market

a community reputation

strong references from past clients

An agent with these qualifications will be able to share very important information with a buyer about Tulum and its real estate market. This information includes:

buying trends

information about the urban development plan

recent updates about the airport

reputation of developers

availability of various developments

In a market such as Tulum, it is important for buyers to have access to this information, and to understand how it pertains to their particular purchase. For example, knowing that the urban growth plan includes a commercial or village center area nearby, or that a new highway bypass will be running near a certain land development will help buyers see potential in a particular property. This same information will help buyers understand the pricing differences between different parts of Tulum and the surrounding area.

An agent who has qualifications, and has become familiar with the market through experience will be able to draw buyers’ attention to both good signs and not-so-good signs, helping to guide the property search.

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So Who Is Investing In Cape Town Properties?

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To say that it is one of the most beautiful places on earth is actually an understatement. It has plenty of everything, the ocean, the mountains, the natural forests, nightlife, and sporting activities. This is what makes choosing where to buy your Cape Town property even harder. If you think the world has not noticed this you are mistaken because Cape Town is fast becoming the second home destination for the world.

Four years ago the average cost of a house in the Cape Town property market was 970,000 Rand. A popular place to buy was the uber-rich Atlantic Coast suburbs of Camps Bay and Clifton, which were the destination of choice for most foreigners seeking a second investment home.

When you decide to buy yourself home or any other kind of real estate, you might in the beginning feel excited about prospects. As time goes by and after viewing a seemingly unending list of properties that fast blend into each other in a blur, it can start looking fairly daunting.

If you have been following the property trends in South Africa you will realize that Cape Town property markets is actually been going through a period of more than healthy growth even in the midst of global fiscal depression. With a 20-25 growth rate the question really is who is buying into the Cape Town property market?

One of the fallouts of the economic downturn overseas is also the growing number of ex-pats who are returning home to South Africa to find jobs. So one of the growing sectors of buyers who are investing in Cape Town property is young families who are settling down and buying prime properties that are competitively priced. Another factor that is helping this is the recent cuts in interest rates by the Reserve Bank. This and scarcity of supply is kept a rosy glow around Cape Town property futures.

Purchases made in the Cape Town property market in recent times also follow the trend of buying older houses with a view to renovating. These spectacular old homes are endowed with big plots that allow you to extend and add as you see fit. Stand-alone property is favored over gated estates as this allows the buyer to individualize the design and architecture of his Cape Town property.

It is true that stupendous leaps of 30% growth a year in Cape Town property prices are a thing of the past but even with a slower pace the return is very good and the growth signifies excellent capital returns. All indications show that the growth rate in the Cape Town property market is still stable with a year on year growth of 15, 5%.

In the middle of a boom, Cape Town property for sale are also fast becoming some of the most sought after properties in the world. Since the opening of the property market to foreign investors, the Cape Town property market has seen healthy growth fueled by strong interest shown by both domestic and foreign buyers.

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