Price is often the first consideration when new customers are deciding whether they will give your product or service a try. If the price is too high, the consumer may be unwilling to see the product’s value, but if the price is too low, the product may be perceived as having poor quality or value.
What can you do to make sure your products are just the right price? Pricing studies can help you:
- Determine a price point for your product that your customer is willing to pay, while maintaining an acceptable profit margin for your company
- Define a price point that will help you compete with existing competitive products similar to yours
- Determine which product features are most and least valuable to your customers
- Determine feature bundles that will create value over your competitors
- Determine how changes in pricing will affect market share
At Vernon Research, we conduct market research to determine optimum pricing for new and existing products. We will assist with both price optimization and first-time pricing strategies. After determining your optimal price point, you will have the ability to more accurately forecast sales and predict how profitable your product can be.
QUESTIONS THAT MARKET RESEARCH CAN ANSWER:
- Am I charging too much or too little for my product or service?
- Will buying cycles affect the price structure of my product?
- What pricing strategy will work best for my product?
- How much should I charge for my product or service?
AM I CHARGING TOO MUCH OR TOO LITTLE FOR MY PRODUCT OR SERVICE?
We can help you pinpoint the most effective price point for your product or service. It is not enough to simply set your price based on your competition. We will help you determine the most effective price for your company, your product’s value and your customer.
WILL BUYING CYCLES AFFECT THE PRICE STRUCTURE OF MY PRODUCT?
Many products are seasonal or have buying cycles. Consumers often expect lower or higher prices, depending on what time of year it is. They may be willing to pay more for a product before a particular season, but then expect a reduction in price once the season is over. Our research can identify peaks and valleys in the consumer and B2B buying cycles.
WHAT PRICING STRATEGY WILL WORK BEST FOR MY PRODUCT?
Companies don’t always have to offer the lowest-priced product on the shelf. Smaller companies often cannot compete with larger companies strictly on price, so they must determine what they can offer customers that the larger company does not. Determining what attributes buyers place value on can give your company the ability to remain competitive. Often, it’s a matter of offering features and value that a lower price product does not offer.
HOW MUCH SHOULD I CHARGE FOR MY PRODUCT OR SERVICE?
In order to understand what consumers or business buyers are willing to pay for your product, you need to identify the value that they place on certain features of the product. You may find that a customer is willing to pay more for a particular feature or bundle of features. On the other hand, you may determine that while a customer indicates they see the value of a specific feature, they are not willing to pay more for it.
Vernon Research has deep experience in using market research and advanced analysis tools to gain the kind of scientifically-valid information companies need to make strategic pricing decisions.
Interested in talking with Vernon about pricing strategies?
Please contact us today.