Higher pricing, few customers Vs Lower Pricing, Abundant Customers- Which location would you choose?

[King Belieal]

A friend of mine threw up a puzzle to me. He is torn between choosing a favourable location for his business. It is a new startup business.

Between a location that buys at a very high price but average turnout of customers, and another location that buys at half of the price in the former location but has thousands of customers.

Which one would you advise him to choose? N/B: The prices in the two locations are still profitable but different margins per unit.

 

[Starmix]

I prefer on low pricing but customers are coming in and out feeing satisfied with the price and quality of the product. Let's be practical and realistic this time.

 

[Augusta]

it has always been low pricing but with more customers for me. You would be able to create more customers base and take up more market share

 

[eLdavis]

I think it would be more balanced to have a mixture of both. Like there are some jobs I do, I usually charge them based on their level of pockets.

 

[Suba]

In trading we can act as an agent or b2b or as a retail b2c, if we act as an agent then the profit taken is small but the turnover is very high so it will make a large income, whereas in retail trading you will make a bigger profit but the turnover is small. If you have large capital, it is better to act as an agent or b2b.

 

[magnus2022]

Business comes with moral ethic. If you are doing business without morals, you are the worst enemy of mankind. Low quality simply less value. If you sell substandard goodd, people may patronize you for a moment and gradually disappear.

 

[itsmejob]

In some aspect, higher price is better because of the quality, lower price is not because of the quality too. I would say, it should be balance of both. Look for a market where people give importance to the value they get over the price or the price over the quality.

 

[freelancermaria]

Paying a low price does not necessarily mean compromising on quality. A lot of products come at a reasonable cost yet are of high quality, particularly if they are manufactured by companies with competent production techniques. Similarly, a high-priced item does not always guarantee high quality.

 

[Stardom22]

For a healthy business, there must be the flow of the customers and the products at large in any given point. So.l back on the higher volumes of sales.

 

[King Belieal]

Business comes with moral ethic. If you are doing business without morals, you are the worst enemy of mankind. Low quality simply less value. If you sell substandard goodd, people may patronize you for a moment and gradually disappear.

What are you even saying? No one is talking about low quality here. Or does low pricing equate to low quality from your point of view.