As we mentioned earlier, it is important for a buyer to know the unit price of what they are purchasing in order to understand how much they are paying for each item.
On the other hand, it is useful for a seller because it allows them to create promotions and even base their pricing strategy on the real value of each item they sell and thus understand how much profit they can generate in their business.
The advantages of knowing the unit price of your products are:
Know the profit in your business.
Determine the minimum price at which you can offer your products to be profitable.
Create sales strategies through packages or promotions.
Having the opportunity to grow your phone library business by knowing how profitable it is.
Difference between unit sales price and unit production cost
Although they may seem like similar terms and some people may even use them as synonyms, the reality is that the unit sales price and the unit production cost are different and here we share the objective of each one.
The cost of production is what it costs the seller to produce or sell a product. It is calculated based on two types of costs: variable and fixed.
Variables are those that are not always the same in the period of time in which you are going to produce, for example :
Raw material
Labour
Use of machinery
Equipment maintenance
On the other hand, fixed costs are those that you can consider within your established time period as something that you must cover for your production, for example:
Taxes
Renting a premises
Web domain
Insurance
And in the case of the unit price , it is calculated according to the factors that we shared with you previously. Also, remember that the cost of production is one of those factors to take into account when setting prices.
Calculate the unit sales price of your products or services
To determine the unit price of your products, you must take into account the factors we have discussed in this article, but you must also have a strategy when setting your prices.
We recommend that you establish these strategies based on a market study and thinking about your buyer persona so that you can obtain better results.
If you already have products or services to sell and want to get started in the digital world, we invite you to create an online store. Did you know that you can start for free? With Tiendanube you can choose the free plan in Mexico and Argentina or try the platform for 14 days at no cost in Colombia and Chile.