The Pricing Game: Charge More

For a product priced at $10 with a profit of $1, if you raise the price by 1% ($0.10) that's a 10% increase in profit. Raise the price by 10% ($1) and it's a 100% increase in profit!


References:

• http://www.pricingsolutions.com/index.php/en/more-about-joomla/the-newsletters/157-pricing-for-profit
• http://iterativepath.wordpress.com/2009/02/26/another-cpg-reporting-profit-rise-from-price-increase/
• http://iterativepath.wordpress.com/2010/06/06/the-1-price-increase-fallacy/
• http://iterativepath.wordpress.com/2009/05/19/3-components-of-effective-price-management/
• http://pricingforprofitbook.com/pricing
• http://www.amazon.com/1-Windfall-Successful-Companies-Profit/dp/0061684325/
• http://www.amazon.com/Price-Advantage-Wiley-Finance/dp/0470481773/

Should you build an ecommerce platform for small businesses in India?

Asking small businesses in India to get their own ecommerce store is like selling them retail space in the remotest part of town.

The first problem to solve for small businesses is to help them get more customers.

I learned this the hard way with AceSeller.

How can I help small businesses get more customer? is a better question to ask than Should I build an ecommerce platform for small businesses?

The former is a problem statement looking for a solution and going down that path will lead you to many interesting solutions. The latter is a solution looking for a problem, where you already think you know the solution and you're just looking for validation.