How do you decide your product's pricing strategy?
Software Guy (Aarvy)
9 replies
I can think of a few things here, you can add more:
1. Identify your customer
2. Find your value proposition
3. Competitors' pricing
4. Value-based pricing, and
5. Price skimming
Replies
Rich Watson@richw
NVSTly: Social Investing
I aimed to undercut most competitors by 50% or more, which has some drawbacks on how many contributors we can compensate compared to competitors. but i believe in quality > quantity and I'm certain our users do to.
Share
Depending upon target niche and customers need towards the product
@jerryton_surya Yup, that needs to be added.✔
Here are some more
6. Cost plus
7. Free, because ...
8. X Dollars because that is where the market is at
9. X plus or minus because, new product / mine is better
10. Loss leader, because I have other products that will then make money
Only one big piece of advice to give here: avoid having the "lowest price on the market" as your only unique selling proposition.
It doesn't benefit your business, you, and not even the market, as soon somebody is gonna find a way to make your product even cheaper, making this a war on the lowest price. Just try to make yourself different from others. You gotta be an orange compared to an apple which is your main competitor let's say.
Some people like oranges, some prefer apples.
@piero_borrelli That's a great piece of information with relevant example. Thank you for sharing this Piero.👍
@software_guy My pleasure to help!