Things to Consider When Developing a Pricing Strategy | Business 2 Community

One of the hardest parts of launching a new product is determining its price. After putting so much effort into its research and development, the product may seem priceless to you, but it’s important to detach yourself from these emotions so you can come up with a fair, yet profitable pricing strategy. Here are the things you need to consider to create the ideal pricing strategy for your product:

Your Customers

Before you price your products, it’s imperative that you get to know your customers to understand what they would be comfortable spending. Invest in market research to see how much your customers typically spend on products in your category. Do your customers care more about quality or price? Where do they shop? How much do they spend per trip? Ask questions such as “if product A was priced at $X, would you buy it? What about $Y?” This information will help you set a range for your product’s pricing so you can appeal to your target market.

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Things to Consider When Developing a Pricing Strategy.

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