登录查看更多内容

What's the best way to price your new product?

由人工智能和领英社区提供技术支持

Pricing your new product is one of the most important decisions you can make as a retail marketer. It can affect your sales, profits, customer satisfaction, and competitive advantage. But how do you find the optimal price that maximizes your value and meets your customers' expectations? In this article, we'll explore some of the best practices and methods for pricing your new product in the retail market.

此文章中的业界达人

由社区从 3 条内容中精选。了解更多

Leonid Gladilin

Holistic P&L improvement | B2C and B2B e-commerce | | TOP 100 Retail Tech Influencers 2024 by RTIH | Top E-commerce…
Aviran Yanir

Founder @ Clinica & Laboratorio Express | Advanced Technology, Expedite and Precision Results
Mike Smithers

Director, Sales Manager, Grandad. Loves helping people and businesses unlock their sales potential.

1 Know your costs

The first step in pricing your new product is to calculate your costs. This includes not only the direct costs of producing and delivering your product, such as materials, labor, and shipping, but also the indirect costs, such as overhead, marketing, and taxes. You need to know your costs to determine your break-even point, which is the minimum price you need to cover your expenses and make zero profit. Your break-even point is your baseline for setting your price, as anything below it will result in a loss.

添加您的观点

2 Understand your value

The next step in pricing your new product is to assess your value proposition, which is the unique benefit or solution that your product offers to your customers. Your value proposition should answer the question: why should customers buy your product instead of your competitors'? Your value proposition can be based on various factors, such as quality, features, design, convenience, or social impact. You need to understand your value proposition to determine your markup, which is the percentage or amount that you add to your costs to generate your profit. Your markup should reflect your value and differentiate your product from others in the market.

添加您的观点

Aviran Yanir

Founder @ Clinica & Laboratorio Express | Advanced Technology, Expedite and Precision Results
举报内容
Pricing a new product is crucial for your business. To set the right price follow these steps: 1. Market Research: Understand your target market and competitors 2. Cost-Based Pricing: Calculate all costs and add a markup 3. Value-Based Pricing: Determine your products perceived value 4. Competitive Pricing: Consider your competitors prices 5. Psychological Pricing: Use pricing psychology, like $9.99 6. Dynamic Pricing: Adjust prices based on real-time factors 7. Test Pricing: A/B test different pricing strategies 8. Bundling and Upselling: Offer bundles or upsells 9. Promotions and Discounts: Use limited-time offers wisely 10. Monitor and Adjust: Continuously assess and adapt your pricing

已翻译

赞

3 Research your market

The third step in pricing your new product is to research your market, which includes your customers, competitors, and industry trends. You need to research your market to find out how much your customers are willing to pay, how much your competitors are charging, and how the market conditions are affecting the demand and supply of your product. You can use various methods to research your market, such as surveys, interviews, focus groups, online tools, or data analysis. You need to research your market to adjust your price according to the perceived value, competitive position, and market opportunity of your product.

添加您的观点

Leonid Gladilin

Holistic P&L improvement | B2C and B2B e-commerce | | TOP 100 Retail Tech Influencers 2024 by RTIH | Top E-commerce Voice | Let's boost your LTV
举报内容
It's always better to start from the market research to have the whole information about your client's demands, competitors, etc. All this information will be the base for product specification. You can calculate costs, potential margins, and other KPIs only after it.

已翻译

赞

4 Choose your strategy

The fourth step in pricing your new product is to choose your pricing strategy, which is the approach or technique you use to set your price. Depending on your goals, target market, and product life cycle, there are many strategies available. Cost-plus pricing involves adding a fixed or percentage markup to your costs to determine your price; this is simple and straightforward but may not reflect your value or market conditions. Value-based pricing sets the price based on the perceived value or benefit of the product; this is customer-oriented and flexible but may require more research and testing. Competitive pricing involves setting the price based on competitors or similar products; this is market-driven and competitive but may reduce profit margin and differentiation. Penetration pricing sets the price lower than the market average to gain market share; this is growth-oriented and aggressive but may lower profitability and quality perception. Skimming pricing sets the price higher than the market average; this is profit-oriented and exclusive but may limit market size and invite competition.

添加您的观点

Mike Smithers

Director, Sales Manager, Grandad. Loves helping people and businesses unlock their sales potential.
举报内容
The value of the product is quite different to the pricing, so your strategy should be to: 1. Establish why your price is the way it is by key selling points 2. Be targeted to your direct market. Be careful not to market to a wide market, because your advertising budget should be designed to put you in front of qualified buyers 3. Stand out. There is ‘too professional’ in marketing, so how can you be different, while staying true to your core values. If you don’t have core values, sort this out quickly. 4. Don’t be afraid to make a mistake. There is no better way to learn than jump off the cliff. Just put it out there, you are your own worst critic anyway. Trust your plan, and enjoy the madness!

已翻译

赞

5 Test your price

The fifth step in pricing your new product is to test your price, a process of experimenting and evaluating your price before launching. You need to validate assumptions, measure customer reactions, and optimize performance. A/B testing, conjoint analysis, and pilot testing are all methods you can use to test your price. A/B testing is quantitative and data-driven, helping you identify the most effective price. Conjoint analysis is qualitative and customer-centric, helping you understand value and elasticity. Pilot testing is practical and realistic, allowing you to test the price in a real-world scenario. Testing your price is essential for ensuring the success of your product.

添加您的观点

6 Monitor and adjust your price

The final step in pricing your new product is to monitor and adjust your price, which involves tracking and updating it according to the feedback and market changes. This is necessary to maintain competitiveness, profitability, and customer satisfaction. To do this, you can use key performance indicators (KPIs), customer feedback, and pricing software. KPIs provide quantitative and objective insights into your pricing effectiveness and efficiency. Customer feedback gives qualitative and subjective insights into pricing satisfaction and loyalty. Lastly, pricing software helps you automate, optimize, or personalize your pricing with data, algorithms, or artificial intelligence. Pricing a new product is a complex task that requires careful planning, research, testing, and monitoring; however, by following these six steps you can find the best price for your product.

添加您的观点

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

添加您的观点

Retail Marketing

+ 关注

给文章评分

我们借助人工智能创建了此文章。您认为这篇文章怎么样？

很棒不太好

举报此文章

查看全部

What's the best way to price your new product?

1

2

3

4

5

6

7

1 Know your costs

2 Understand your value

3 Research your market

4 Choose your strategy

5 Test your price

6 Monitor and adjust your price

7 Here’s what else to consider

Retail Marketing

给文章评分

感谢您的反馈

更多Retail Marketing相关文章

更多相关阅读内容

What's the best way to price your new product?

1

2

3

4

5

6

7

1 Know your costs

2 Understand your value

3 Research your market

4 Choose your strategy

5 Test your price

6 Monitor and adjust your price

7 Here’s what else to consider

Retail Marketing

给文章评分

感谢您的反馈

查看其他技能