What should be your Product's Price?
Deciding the Price is the most important part of your new launching product, don't you think the same way!!!
As for the standard that I have been taught down the line of my experience, there are mainly 3 models(although there are various factors) that help you decide the pricing of your product before launching it in the market. They are,
Pricing Model:-
1. Cost-Based Model
2.Market-Based Model
3. Value-Based Model
To go through each of these models in detail I might need another article(LoL). I will surely write about it shortly.
Bonus Takeaways:-
Some of the criteria to keep in mind before deciding the price of your product are:-
1. Competition- Is there any competitors of the product in the market. If so, how many?
2. Demand- Self explanatory I guess. What's the demand for your product?
3. Scarcity- Inversely correlated to demand.
4. Uniqueness- How unique is your product?
5. Margin- How much profit margin should you keep?
6. Quality- What should be the quality of your product?
7. Value- How much value your product adds up to your customer's lifestyle?
I hope it is beneficial to those young entrepreneurs who are still in a dilemma to decide the price of their new product.