buraka.tv Price Story - Product Pricing Come from the Specifications of the Product and Potential Customers
Who Will Buy Your New Product
The important factor when you are determining the product pricing strategy is who will buy your product. It means you have to clarify the customers of the product. It is an essential factor in setting the best product pricing. You can decide whether the customers buy the product because of the price or the quality by understanding their characters. It is better to hire a market research agency for a better research process and a more accurate result.
What Market Position the Product Is
Make a market position for the product. It can be the most expensive, most luxurious, high-end brand, cheapest, and many more. The market position creates a perception in the eyes of potential customers.
How Much Money You Spend To Produce the Product
Now, start to calculate the total production cost to produce a new product until it launches to customers. Try to classify the production cost into fixed cost and variable cost. Fixed cost is the cost that you always expend to produce the product. The costs that include the fixed cost are rent, electricity, salaries for the employees, materials, and many more. Variable cost is the additional cost. Let say you need additional materials that are not available on the main materials. Put the cost of the additional materials on the variable cost. Calculate the fixed cost and variable cost to determine the production cost. You must set a higher price than the production cost to earn a profit. Find out the cost of similar products in the market and compare it with your product to get the best product pricing.
Why You Launch the Product
You must have a reason why you launch a new product. Business owners may release a new product because they want to get a maximal profit. Other owners introduce a new product to increases market share maximally. Let say you want to earn a maximal profit from the current item. It means you have to add more values to your product. The more benefits you give to the goods, the more customers will buy it no matter the price. If you want to gain market share, you can try to promote a new product at an affordable price. It will be better to combine the best product pricing strategy with the ability to sell for a maximal result. Just make sure that you don’t make poor pricing decisions.
What Are the Product Values
It is better to produce a product that can help to solve the problem of your potential customers. It means that the product has value.