Planning for My First Bucket of Gold

One part of my project is to tell myself designed garbage bags in my neighborhood to use useful diagrams and color recognition as an approach for citizens to sort garbage quickly. Since our neighborhood has space for personal sales, I am planning to place my product there.

Getting started, I completed a checklist:

1. Get to know the market price of one roll of a garbage bag. Balance my price to sell the bag can attract a lot of customers and make a few profits. Since my ultimate goal is not to earn money, I will not add many profits to the price.

2. Know some ways to attract customers to buy this bag.

To complete this, I first mark out that the price I used to compare is from the Taobao website. Therefore, I need to consider the delivery and many other costs involved. Above, I also need to take care of delivery costs when the bag is transported to my neighborhood.

Base on the comparison of multiple stores, the picture showed above is one of the stores I compare. The final price for each roll of the garbage bag, disregarding the color difference, is 6.5 RMB. My sale in the neighborhood has one conclusive advantage: saving time and energy residents need to spend to walk to the supermarket. This convenient sale in the neighborhood will help neighbors a lot and earn a few customers as the beginning.

Second, how to attract customers. I am not a student of economics, so I can research some academic papers and try to learn some specific skills that can be applied to my sales.

This is what I found to be very interesting. The psychological process of the buyers matters a lot after they see the products in the market. They will first view the objective price, which is the price that displays on the label (the price I decide to sell). Then the attitude toward this product will undergo a psychological price. This means that they will value if this product genuinely worth this price base on their recognition and decide what price will be acceptable for them.

This psychological price varies with people but does not have many differences in the same social class. Since our neighborhood is somehow expensive with many villas' residents. I guess the economic condition for people who live here isn't low. Thus, the price of the garbage bag as a daily use product won't be too high if I set it at 6.5

The last step, as shown in the figure, is customers' integration of P-price with other information. This means that the extra information outside of the product itself also matters. This includes the condition of a market. If a market is beside a dirty landscape, I highly doubt if there will be any buyers even though the price is acceptable. Second, the intimacy and trustfulness with the store. As 8 years resident of this neighborhood, I have many friends and know many people since I was young. I can establish so-called customer loyalty with my acquittance first and add more customers through their recommendations.

In conclusion, the price has been decided. The plan of how to attract customers has been prepared. And the next step is coming.