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What specific factors do you take into consideration when you set the pricing of a new product or need to change the pricing of existing products? Have you had occasion to reduce any prices recently?
ModeratorSG
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Posts:
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02/10/08
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(8 of 8)
12-Oct-2008 19:21
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hi Again
Ultimately the customer will decide the market value of your product and service by choosing to buy or not buy based on the offer you make them.
You need to understand what is important to the customer and how that compares to what you are offering - the closer it is to a 100% match the more you can charge - providing your competitors are not also providing the exact same 100% match
Every product and service (in the same market sector) has around 90% of the same features and benefits........ look at the detail and find customers that appreciate the final 10% of what you do differently - and charge them extra for the added value.
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Geoff Gwynn
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27/03/08
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(7 of 8)
04-Oct-2008 11:42
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Striking that happy medium must be very hard. As a consumer it can be quite frustrating to find the same things at a wide range of prices that vary from region and sometimes even time of year.
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27/03/08
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(6 of 8)
03-Oct-2008 16:51
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It's a difficult question, but I find go2market's answer to be helpful in figuring out how to price a product. You have to give a lot of thought into the direction you want to choose. I'm curious to find out which of go2market's suggestions you would pick for your business.
Which would you go with as far as pricing is concerned and why?
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02/10/08
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(5 of 8)
03-Oct-2008 08:02
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WoW - probably the most complex question to answer because of all of the dependencies involved.
The price for the product must relate to the value the customer gets from you and the product
Some people will only buy the cheapest available. If this is your chosen market then focus on servicing these customers efficiently to reduce your cost of sale and maximise your profit levels.
Some customers only buy the best. Make sure they feel loved and cosset them as is necessary to make sure they remain loyal
The majority of us are looking for good value. i.e. not necessarily the cheapest or the most expensive. We want to pay a fair price and have a good "customer experience"
You need to understand the customers who you will be targeting and what they see as the "value" from your offering, get the marketing message consistent with the price........... and execute efficiently.
Measure the response regularly and then adjust if necessary.
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Geoff Gwynn
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(4 of 8)
09-Aug-2008 11:54
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As shown in the previous posts, pricing your product is an inexact science, at best. Were you successful with your first shot at pricing during start up? Did you find the need to make adjustments later on?
ModeratorSG
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13/04/08
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(3 of 8)
01-Aug-2008 20:49
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Pricing your product or service
How much are you going to charge your customers for your product or service? Getting your pricing right could double your profits at a stroke.
Many start-up businesses work out a cost figure for each product and add a modest mark-up - known as cost-plus pricing. While this method is common, it is not the only way to arrive at a price. Invest serious thought into your pricing methodology at an early stage - it can pay big dividends later.
Pricing is based on three critical points:
What your product or service will be worth to your customers - its value.
What it costs you to produce your product or provide your service.
The price your competitors charge.
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(2 of 8)
24-Jun-2008 11:47
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With new products, one must take be sure to price it competitively. I've found that it helps to price my product a bit lower than those similar to it in order to give customers an incentive to purchase my product. As far as existing products; it depends upon my stock and how this merchandise has sold in the past. If the product is moving itself at the current cost, then I leave it. If it is not, then I lower the price.
Moderator DC
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27/03/08
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(1 of 8)
22-Jun-2008 11:44
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What specific factors do you take into consideration when you set the pricing of a new product or need to change the pricing of existing products? Have you had occasion to reduce any prices recently?
ModeratorSG
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