The PLUS-Pricing Assessment | Manufacturing Business Technology

The Challenge of Choosing a Pricing Strategy

The rate of innovation in technology hardware has been accelerating over the past decades. However, a major challenge is defining an optimal launch pricing strategy to realize the new product’s full potential. If the launch price is set too high, the product will get rejected by the market; if on the other hand it is too low, potential profits will be lost – which can be difficult, if not impossible, to regain at a later stage. The Apple Macintosh Portable launch price, for instance, of $7,300 in 1989 was so high that it required a tremendous effort not only in re-designing and -branding into the PowerBook series but also by decreasing the price by over 70 percent until 1991 to turn the flop around.

So how can companies deduce the optimal pricing strategy for a launch, when there is no comparable solution in the market?

In many cases, the PLUS-Pricing Assessment helps innovating technology companies to focus their launch pricing while still being in the concept phase of product development. We explain how companies can conduct the PLUS-Pricing Assessment on their own to determine the accepted price range for a technology hardware launch product, develop launch pricing strategies and eventually get orientation with respect to production costs that will be covered by earnings.

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The PLUS-Pricing Assessment.