OnDemand WTP Pricing Research

The Entrepreneur’s Dilemma: Is Explaining the Product Price their Right Or Yours? | Entrepreneur

When an entrepreneur fixes the price of a product, it’s set on reflection to the target consumer. This brings its own ethical dilemma and challenges. But do entrepreneurs have an ethical demand to communicate the product price change?

Entrepreneurship is a mix of commitment, unending effort and a summation of calculated risk. It’s a constant battle to achieve balance. You don’t wake up one day and call yourself an entrepreneur.

And once an entrepreneur has a product in the market, perhaps it’s their right to explain the product price. It’s not just about giving you the best product, it includes the time and resources used to get the product into the market. Plus, the entrepreneur is looking for profits.

The strategy

The pricing strategy an entrepreneur uses integrates the cost of the product, its value to the end user and profits. But a business can have cycles of peak and low seasons. This prompts the decision makers to take different actions to stop a dip in profits.

For example, if you are selling a luxury product, it only makes sense to a past customer if you lower the price point due to differentiation. Elon Musk, in an email to his employees, defended the consumers’ right to receive an explanation if the product price changes.

Read complete article here:

The Entrepreneur’s Dilemma: Is Explaining the Product Price their Right Or Yours?.

Post a Comment

WP-SpamFree by Pole Position Marketing