Pricing a new product can be challenging. You don’t want to miss out on potential sales by pricing yourself out of a market, but you also don’t want to leave money on the table by setting the price too low. Read how our team helped a medical software company avert new product pricing disaster in our pricing strategy case studies.
When pricing a new product, Price Point Partners price consultants considers the three most important factors:
Cost: What does it cost to produce this product? How will costs be used to set pricing floors? While understanding true costs is critical to prevent selling the new product or service at a margin too low for a successful business model, carefully avoid settling on a cost-plus pricing strategy.
Perceived Value: what does the market really think of our product? How do they value it? Understanding your firm’s value and clearly being able to present a value proposition in the sales process will reinforce a value-based pricing strategy to maximize profits.
Competitive Positioning: How are our competitors positioned in the marketplace and how are their product lines valued by consumers?
Download the Price Point Partners’ Guidelines to New Product Pricing Strategies for more tips to pricing a new product or call a Price Point Partners pricing consultant for a free 30 minute consultation designed to sort through your pricing goals and market challenges at 330-342-0923.