What should be your Product Pricing strategy?

  • 26th Aug'20
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How to do Product Pricing?

 

No matter what type of product you sell, the price you charge your customers or clients will have a direct effect on the success of your business. Some of the business, mainly start-ups, forget to focus on product pricing and continue with other workloads. In this case, product price either end-up being set too low, or too high, or being offered with a completely wrong pricing structure. Hence, businesses fail to find enough customers who pass down the funnel, and product adoption fails to take-off. 

Pricing is about market perception. It is about product adoption. It is about the success or failure of the business. Read below to know how to price a product and its methods:

How to price a product?

https://sumo.com/stories/how-to-price-a-product

https://www.inc.com/guides/price-your-products.html

7 ways to price your product

https://www.marketingdonut.co.uk/marketing-strategy/pricing/seven-ways-to-price-your-product

4 major product pricing methods

https://www.weebly.com/inspiration/product-pricing-methods/

Different types of pricing methods

https://theinvestorsbook.com/pricing-methods.html

 

What are the Pricing Strategies?

 

It is one of the first considerations for many customers and it determines the profit margin on products. Pricing is one of the significant elements of the marketing mix. The wrong price decision can bring about the downfall of a company. It is extremely significant to fix prices at the right level after sufficient market research and evaluation of factors like competitors’ strategies, market conditions, cost of production, etc.

The pricing decision for a product requires several strategies. The price of the product can vary depending on a number of factors including:

  • What the target market is willing to pay for the product
  • The brand image of the company and product
  • The pricing of competitors 
  • If the product is frequently shopped and compared product
  • The estimated volume of product that can be sold

 

Read below to know about pricing strategies:

Ultimate guide to pricing strategies

https://blog.hubspot.com/sales/pricing-strategy

5 most common pricing strategies

https://www.bdc.ca/en/articles-tools/marketing-sales-export/marketing/pages/pricing-5-common-strategies.aspx

Pricing strategies in marketing

https://www.promodo.com/blog/pricing-strategies-in-marketing-6-pricing-methods-for-your-business/

 

We, at OpenGrowth, are constantly looking for trending start-ups in the ecosystem. If you want to know any further information about the startup ecosystem, then do let us know in the comment section below.

 

Contributor: Amrita Sinha

Amrita is in the field of media. She has a deep inclination towards writing and public speaking. She has the aim of removing the stereotypical mindset of society. She loves to read and photography is her passion.

Sources/References:

*Note: The content published above was made in collaboration with our members.

About the author:

Editor , OpenGrowth Content Team

The Editorial Team at OpenGrowth is working to provide you with the perfect place to know everything about startups. Feel free to connect to us.


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