using the internet for new product pricing strategies
Post on 15-Aug-2015
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Are you a new business or start up?
Are you stumped when it comes to
pricing your products or services?
www.cynthiakocialski.com
Using The Internet For New Product Pricing Strategies
Finding the perfect balance when it comes to price is difficult. You want a price that allows for sufficient profit, while also allowing for plenty of sales. You also want to ensure your prices are competitive with your competitors. Quite simply, there’s a pricing “sweet spot”; a goldilocks zone that will enable you to maximize sales and profits.
www.cynthiakocialski.com
Using The Internet For New Product Pricing Strategies
So how do you determine how to price your products and services?
Do you opt for a lower price and more sales or fewer sales and a higher
profit per sale?
www.cynthiakocialski.com
Using The Internet For New Product Pricing Strategies
The web can be the perfect tool for performing pricing experiments that will enable you to achieve an ideal balance in terms of your price offerings! The Internet is a great way to discover your new product pricing strategies.
www.cynthiakocialski.com
Using The Internet For New Product Pricing Strategies
Split testing is one option for testing your prices online. The approach is relatively simple: offer the same product or service at two different prices and look to see which price point appears to be most viable and profitable for your business.
www.cynthiakocialski.com
Using The Internet For New Product Pricing Strategies
Split Testing Online
Customer segmentation can be a useful tool when it comes to developing a successful pricing strategy.In its simplest form, customer segmentation involves understanding the different types of customers who seek your service. Once you understand your customers, their motivations, their budget, their buying patterns and which customers are most profitable for your business, you can work to target them more effectively.
www.cynthiakocialski.com
Using The Internet For New Product Pricing Strategies
Customer Segmentation
Here’s how it works. A magazine performed a study. They offered three subscriptions:
Option 1 – a one-year online subscription for $59.99;
Option 2 – a one-year print subscription for $125.00; and
Option 3 – a one-year print and web subscription for $125.
In this case, 16 chose option 1 and 84 picked option 3. Nobody picked the second option.
www.cynthiakocialski.com
Using The Internet For New Product Pricing Strategies
Decoy Pricing Options
When it comes to setting prices, it’s always best to opt for a price that’s just below the dollar point as this provides you with a psychological advantage in the marketplace.
www.cynthiakocialski.com
Using The Internet For New Product Pricing Strategies
Pricing Strategies
People have a set expectation of what things tend to cost. This perceived value cannot easily be altered, so if your product or service is more expensive than the the competitors’ items, you’ll need to change the perception of your product.
www.cynthiakocialski.com
Using The Internet For New Product Pricing Strategies
Price Perception
It’s also important to remember that a price that’s viable at one point in time may not be viable at another point in
time.
Factors such as the economy and time of year can impact sales.
www.cynthiakocialski.com
Using The Internet For New Product Pricing Strategies
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