Important Things to Remember When pricing a New Product
A new product launched in the market always strives for success. A new product needs to have a lot of features to catch the attention of the customers. This can only happen when the product is advertised and marketed well. It is seen that many well-advertised and good marketed products failed to survive in the market due to pricing.
Pricing is such a concern that every customer first check when they buy a product. It does not matter if any product is very highly priced, people will still buy it only if it has got good useful features but there again many won’t try it because of the price. Similarly, in a low price product people still take a chance in trying it, as they are not shedding much from their pocket.
So here I will give you certain tips about how to price your new product:
- Market research: Before pricing your new product, check out the competitor products, features and the price tag. Thoroughly tally your and their products along with your concept price before you fix the market selling price.
- Target customers: Every product has certain features and are in use only in that particular region. Look out for what kind of consumer’s will use your product, target the consumers accordingly. You will have ample of time to increase your target range later in the long run, but for the start make sure you understand your consumer requirement.
- Price elasticity: You got to pay special attention in price elasticity, check the difference in your products price variations. It is seen that many product’s price fluctuate but are still in demand because of their seasonal availability. If your product is seasonally available, set your price relevant to your cost. If you sell the same product off-season you can apply higher cost to it because you have inventory cost as well. You won’t be able to meet up the cost of the season with off-season costing, so price will depend on this factor’s as well.
- Platform to sell: Choose the correct platform to sell your product, check which website draws the maximum traffic. Many specific selling websites are there, where an item is sold based on the category. It is advised to place your product in multiple eCommerce forum to maximize the product awareness as it is new in the market also make sure you have fixed a competitive pricing.
Pricing a new product includes many aspects like manufacturing cost, production cost, marketing, advertising etc. Do take in account before fixing the price. Try out psychological pricing concept, which is a good way of increasing sales volume. Remember if you set a very high price it will be difficult to capture the market.