Getting the Price Right
Pricing can make or break your perfect product.
You have a new product and a price point that you think makes sense. How can you be sure? Price your item too high and the competition will beat you. Price too low and profits may suffer. A recent Stratessence blog suggests that a bit of price strategy tweaking is all you need to get it right.
Stratessence blogger Manu Mayank, describes four pricing factors to consider carefully. These include:
- Who your buyer is: Know your demographic cohort/group and what they will pay.
- Your target place or region: “Metros and cosmopolitan cities usually have higher prices for consumer goods than rest of the country. Your pricing strategy should take in account where you want to market your products.”
Your pricing strategy should also include constant monitoring of competitor pricing. Mayank offers more tips on price structuring for your start-up, in the full post.