Choosing a pricing strategy for your product can be intimidating because there’s a lot riding on it. You can tackle this task by breaking it down using these five considerations:
• Costs: You want to ensure that the price of your product generates enough revenue to cover your costs.
• Customers: Learning a much as you can about your customers will help you accurately price your products.
• Competition: How is your competition pricing their products? This number is great jumping off point. You want your price to be competitive, but also reflect your product’s value.
• Tiered pricing: If your product(s) can be differentiated through additional features, price them at points that reflect their individual values.
• Odd number pricing: Why does iTunes sell songs at 99 cents instead of $1? In the eyes of a consumer, a few cents can mean the difference between purchasing and passing.