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Product Pricing Checklist


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Product Pricing Checklist Product Pricing Checklist is composed to guide you on establishing a fair and convenient pricing model which will help you to keep your customers interested and satisfied with buying from you.

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Establishing product pricing:

  • Get a clear vision of your distribution strategy: whether you are going to distribute a lot and intensively at a low price, or sell a few, but at higher price;
  • Find a way to align your pricing strategy with image of your brand and company (make sure your pricing will look appropriate within conditions of your domestic market and segment);
  • Elaborate the whole package consisted of different options, services, and sub-products incorporated into the sole offer to be sold as one product at whether unitary or variable pricing;
  • Make sure you understand what reference points your customers will use to consider your product pricing, and how their buying decisions will be made (taking into account current market trends and proposition);
  • Consider constraints imposed upon your pricing, including prime cost of the product, spending power of target audience, desired margin, revenue level, etc. Decompose your price composition into separate components;
  • Identify if your product pricing has a sufficient flexibility component, so probably you may include there some options to optimize the price, or a discounting leeway for certain types of customers to manoeuvre and economize when buying from you;
  • If you sell products for business needs, then consider how businesses of your typical clients work, so you can rethink how to please their interests better (perhaps a one-time payment is more convenient for them, than recurring fees for subscription);
  • Design a compromised solution that fits both your interests and interests of your customers (practice of reasonable compromise in pricing can do a great favor, as well as in any kind of business);
  • Consider pricing of your competitors. Make sure you will not provoke a price war without a reason. If you are going to crash your competitors by a “trespassing” pricing policy, then ensure you have enough of resources and legitimacy to win the price war (usually it is more rational to find a way to co-exist with competitors friendly);
  • Plan the costs per each sale - in fact you need to define how much you are going to invest in every sale, including efforts of salespeople, distributors, etc;
  • Classify your potential customers in different segments according to their buying power. Use this segmentation to diversify your pricing policy and to attract a wider layer of audience (for example, an academic discount can be offered when you deal with students or educational institutions);
  • Evaluate, if possible, the payback period for your customers (how much time a customer will need, if using your product, to compensate or earn back money paid for it);
  • Specify your pricing in definite numbers. Make sure you can confidently explain the methods used to set this pricing (or at least you can approve it as competitive);
  • Anticipate how your customers will judge your pricing model: will they find it fair, flexible, convenient, and rational?
  • Define whether your product is perceived by customers as fairly priced (not overestimated). If there are certain doubts yet, then consider creating a larger package which is made up from more than one product or service (do a bundle proposition) to mitigate price effect;
  • Continuously control your product’s.....


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