In terms of decreasing the price, the Facebook Marketplace allows you to do so and then highlights it. Your pricing is now highlighted in green on the site, showing that you are attempting to move the item by decreasing the price. If a buyer finds a lower price elsewhere, they can purchase this item from you with a click of a button.
If you want to increase the price, you will need to go back into each listing and update the price. This is likely not something you want to do frequently as it is time-consuming. You may want to send an e-mail out to all your previous customers warning them that the price has been increased and include a link back to this page so that they can find the updated prices.
Raising the price too high could cause you to lose sales to competitors who aren't thinking about the cost of doing business. However, if you know you have expensive overhead costs or other fixed expenses, you could use that as a justification for increasing your prices. For example, if you sell on Amazon's Marketplace but your warehouse isn't temperature controlled, then you would need to add extra money to your prices to cover the additional cost of storing items over winter/spring/fall.
So in conclusion, you can list items for sale on the Facebook Marketplace and decrease the price or increase the price depending on what you want to do.
A cheap price does not automatically imply a large number of interested buyers. Consumers are instinctively wary of pricing that are lower than the market average, feeling that a deal that appears "too good to be true" is typically not. When you price your goods lower than the competition, you run the risk of attracting dubious buyers. They will only buy from you because they cannot afford not to. Once they have bought from you, they will most likely look for ways to get their money back.
The best way to understand how pricing affects sales is to look at actual data. We will use sales figures from one of our examples but you should always look at what's happening in the real world. Then choose what theory fits best with the facts at hand. In this case, we will follow the traditional wisdom of saying that low prices mean low sales.
It is important to remember that selling at a loss is only viable for certain types of products. If you sell expensive items then it would be unwise to sell at a loss because you will go out of business soon after opening your door for business. Also, consider the fact that even if you manage to stay in business for some time by selling at a loss, you will still lose money on each sale. This is because without making a profit you will eventually run out of funds and have to close your shop.
In conclusion, selling at a loss is possible but it requires careful consideration of both your budget and your resources.
Entrepreneur authors' opinions are their own. The decision to raise or cut your rates is a difficult one with significant implications for your organization. However, the question about whether or not to adjust pricing is not as essential as the decision about how to do so. Without a clear understanding of your costs, it's impossible to set fair prices. If you don't know where your money is going, you can't manage it effectively.
The first step in setting fair prices is to understand your costs. What are your expenses? Where does your revenue come from? What percentage of your customers do you have? Are there any hidden costs that may affect your business? For example, if you offer free shipping on every order, but this leads to more waste due to returns, then you might want to consider adjusting your pricing to reflect the true cost of your product.
After you know your costs, you can calculate your average price. This is the amount you need to charge to make a profit after paying your bills. If your current sales are $10,000 per month and your expenses are $5,000, then you would need to sell approximately 20 items each month to break even. That's a lot of products!
It's helpful if you can estimate how much traffic will your website receive.