Dilemma - cheap ballerinas with low margin higher sales volume or expensive ballerinas with bigger margin and less sales?

After conducting the questionnaire in clubs, we see two very clear demand on pricing on the ballerinas. We can make higher quality ballerinas at higher prices so they can wear them again in the future, but this would mean less demand and selling less as they will not buy as frequently. We can also produce cheaper shoes at a lower quality, demand will be high, girls can buy them every time they go clubbing and dispose them soon after; leaving them no regret on 'throwing one away and buying a new pair'. But if the quality is too low this might stop people from trusting the ballerinas or not buying them again.

Below is a definition of  Margin Turnover Model of Retail (by Ronald R. Gist)

We will color parts that is related to our business: 

Blue represents points that fits our ballerinas and orange represents points that do not match.

1. Low Margin High Turnover Stores

Such an operation assumes that low price is the most significant determinant of customer patronage. The stores in this category price their products below the market level. Marketing communication focuses mainly on price. They provide very few services; if any, and they normally entail an extra charge whenever they do. The merchandise in these stores is generally pre-sold or self sold. This means that the customers buy the product, rather than the store selling them. These stores are typically located in isolated locations and usually stock a wide range of fast moving goods in several merchandise lines. The inventory consists of well-known brands for which the manufacturer through national advertising creates a consumer pull. Local promotion focuses on low price. Wal-mart in the United States is an example and Pantaloon Chain or Subhiksha are Indian examples of such stores.

2. High Margin Low Turnover Stores

This operation is based on the premise that distinctive merchandise, service and sales approach are the most important factors for attracting customers. Stores in this category price their products higher than those in the market, but not necessarily higher than those in similar outlets. The focus in marketing communication is on product quality and uniqueness. Merchandise is primarily sold in store and not pre-sold. These stores provide a large number of services

3. High Margin High Turnover Stores

These stores generally stock a narrow line of products with turnover of Reasonably high frequency. They could be situated in a non-commercial area but not too far from a major thoroughfare. Their location advantage allows them to charge a higher price. High overhead costs and, low volumes also necessitate a higher price.

4. Low Margin-Low Turnover Stores

Retail enterprises in this category are pushed to maintain low margins because of price wars. Compounding this problem is the low volume of sales, which is probably a result of poor management, unsuitable location etc. such businesses, normally get wiped out over a period of time.

CONCLUSION
We cannot find a clear position on where our ballerinas stand in the high/low margin high/low turnover chart. We find ourselves in both scenarios. It is really difficult to try to position a new product and a new location...

Information from http://www.mbaknol.com/retail-management/margin-turnover-model-of-retail/