Pricing Your Product: Best Strategies to Employ - The European Business Review

Surveys and questionnaires provide insight into how the market works, your competitors, customer expectations and how products are presented.

It's not enough to try to match or beat the competition. The customer's response to your pricing is vital. A low price may suggest low quality and vice versa.

Take all expenses into account while setting up your business, including the variable and fixed costs.

After working out the total costs, subtract the costs from the intended product price to determine whether it will result in a profit or loss.

When you pick out product prices, determine what you aim to achieve with your pricing analysis and what pricing strategies will enable you to achieve these objectives.

If you're launching a new product, it's best to start with a relatively low price to help build up your market presence. Or consider a high price that makes the customer adopt early. Consistent pricing across the range is essential.

It's vital to understand price-fixing and predatory pricing.

While doing your pricing analysis, steer clear of these practices that can cause negative consequences.