What do you think determine the price of product?

[Lens1000]

The price of product is very crucial to any kind of business and that is why it is important to put into concentration certain factors that is involved in pricing.

Understanding the cost of production is also very important if you want to set a pricing model. Puting into consideration the direct cost like materials and labor as well as also considering the indirect cost like overhead expenses is crucial.

Conducting market research play a significant role in pricing model as well when you analyze competitors price, customer preference and you also take into concentration market demands. it issues essential in setting a competitive price..

 

[uptrendfinancialsignal]

It is very important for the pricing strategy to align with your business objectives and you must also put into consideration positioning in the market. Weather you are using a customer base pricing, value based pricing or the competitor based pricing model, it most be dependent on your objectives.

Considering the economic factors such as supply and demand dynamics is also very essential especially the inflation and currency fluctuation because it will have a great impact in your pricing decisions. It is essential to be updated on the market trends and also put into consideration the macroeconomic indicators as well .

 

[Lens1000]

It is very important for the pricing strategy to align with your business objectives and you must also put into consideration positioning in the market. Weather you are using a customer base pricing, value based pricing or the competitor based pricing model, it most be dependent on your objectives.

Considering the economic factors such as supply and demand dynamics is also very essential especially the inflation and currency fluctuation because it will have a great impact in your pricing decisions. It is essential to be updated on the market trends and also put into consideration the macroeconomic indicators as well .

You have made a very wonderful point! But it is important to stress forward that there is need for customer segmentation because this will allow you to customize your pricing strategy . This is based on different customers segments and their willingness to pay certain amount of money for a certain products. Offering discount for specific customer groups can be a very good way to maximize your revenue.

Concentrating on the product life cycle stage is also one of the things to put into consideration when determining the pricing model . The pricing could be based on this strength of the brand as well.