Pricing Strategies and Revenue Growth for the Lunar New Year
The Lunar New Year is always a golden opportunity for businesses, cooperatives, and individual entrepreneurs to boost their revenue. However, not everyone fully understands how to price their products effectively and maximize profits. The event “Product Pricing, Revenue Growth, and Lunar New Year Acceleration” organized by the IDAP project in Lao Cai and Son La delivered valuable lessons, inspired participants, and empowered business owners to confidently navigate the market.
Profit Margins: Numbers That Speak
The event opened with a thought-provoking question: “What is your current profit margin?” This question left many participants puzzled. It turned out that several businesses still confuse "paper profits" with actual profits after accounting for hidden costs such as labor, operations, and marketing.
A practical exercise helped attendees clearly understand how to calculate average profit margins. Even more surprising, some businesses realized they were "selling more to lose more." The takeaway? Understanding your profit numbers is the first step to sustainable growth.
Product Pricing: The Art of Balancing Value and Costs
One of the highlights of the event was the session on product pricing strategies. Beyond simply adding up production costs, the speaker introduced three smart pricing strategies:
- Enhance perceived value: Invest in packaging and share the story behind the product, allowing customers to see value beyond the price tag.
- Reduce production costs: Seek optimal suppliers while maintaining quality.
- Adjust selling prices reasonably: Persuade customers by elevating their shopping experience.
A story from a cooperative selling dried fish from the hydroelectric lake in Son La perfectly illustrated this point. When the product carried a meaningful story about protecting nature, consumers were willing to pay a premium.
Lessons from Practice: A Pillow and Its Numbers
A real-life scenario was presented: how to price a herbal pillow made from dried “đinh lăng” leaves? Every cost, from pillow covers and dried leaves to labor for leaf processing, was meticulously analyzed. The result? A pricing strategy that not only ensured profitability but also made the product more competitive in the market.
The Atmosphere: Vibrant and Inspiring
This was not just about dry numbers; the event created an open and engaging environment where businesses confidently shared their stories and received actionable advice from the speaker. Attendees left with a newfound understanding that pricing is not just a technique but an art of creating value.
If you’re interested in participating in such valuable sessions, follow the IDAP project. To ensure a prosperous Lunar New Year, it’s time to start with intelligent and sustainable business strategies.