How Do I Price My New Product?
By Jeff Curie (45 points), May 03, 2007 — 3 CommentsWhen you have new product on the market how do you figure out what to charge for it?
I believe that triangulating the price from multiple perspectives is a cornerstone to this process.
About Jeff Curie
VP Marketing at SupplyFrame, a vertical search engine for electronic components. Previously Chief Strategist of Identity Management at IBM and Director of Strategy at Access360. Co-Founder of the Southern California Entrepreneur Network (SCENe). Holds 3 patents.
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(0 points)
May 03, 04:05 pm
The pricing strategy is going to take on different forms depending on a few factors: the target market (Big enterprises, consumers, SMBs, etc…) and competition (for example). Beyond COGS (of course).
(9 points)
May 06, 08:05 pm
Yup, three perspectives for pricing (that I know of):
(a) Value provided to customer,
(b) Cost of building the product, and
(c) Competitor costs (and market positioning).
It might be worth including/referencing some ideas from: http://softwarepricing.com/
(14 points)
May 12, 02:05 am
Like many good answers… it depends.
It depends on what you intend to do with the product. Is it a revolutionary new product, or an improvement to an existing product. Is it easy for consumers to attach a value or reference price to it? What’s your corporate strategy – driving penetration or achieving profitability?