Title: Pricing Your Products

Hello,

The standard pricing model for most companies is to simply
price their products at or slightly below the competition
in order to be competitive on pricing without discounting
their product too much below the competition. But this is
not always the best strategy.

For one thing, there’s the concept of perceived value. If
you price your product too low, you run the risk of your
potential customers thinking your product isn’t as of high
a quality as your competitors’ products. 

Of course, if you price too high, people may believe your 
products are better quality, but they might not be able to
afford them. 

This is where careful market research comes into play. It 
can be very risky to simply guess at the right price for 
your product.

Obviously, you must price so that you make a good profit, 
but beyond that, what should your pricing strategy be?

The first thing you need to do is figure out the price 
range of most of your best selling competitors’ products.
You want to see if there are any gaps in the market that
you might be able to fill.

Let’s say you want to sell a new type of iPhone case. You
see there are a few products that are priced over fifty 
dollars, and a large number of products priced under fifteen
dollars, but hardly any priced between twenty and forty
dollars.

Rather than try to compete in the flooded low-end market,
or break into the well-established high-end market, you
might want to price your product in between to appeal to
those price conscious shoppers that may be frustrated 
with the poor quality of the cheaper option, and to appeal
to those buyers who generally prefer higher-priced options
but now wish to save money.

If you don’t have many competitors, you should price your
product based on a comparison between the features of your
product and that of your competitors. If you have fewer
features, you should ideally price less. If you have many
more important features, you could price significantly 
higher as long as you do a good job in your marketing so
potential buyers understand why your product costs more.

Tomorrow is our last lesson in this series, and we are 
going to take a look at a few final tips for market
research.

Until then, 

{YOUR NAME HERE}

PS- You definitely don’t want to miss the tips in our
final lesson! Be sure to look for it tomorrow!


