Pricing Strategy: How to find the Ideal Price for a Product

In this video, we will walk you through 8 different pricing strategies that will help you decide on how to price a product.

Setting the right prices for your products is a balancing act. A low price isn’t always ideal, as the product might see a healthy stream of sales without turning any profit (and we all like to eat and pay our bills, right?). Similarly, when a product has a high price, a retailer may see fewer sales and “price out” more budget-conscious customers, losing market positioning.

Ultimately, every small business will have to do their homework. Retailers have to consider factors like production and business costs, consumer trends, revenue goals, and competitor pricing. Even then, setting a price for a new product, or even an existing product line, isn’t just pure math. In fact, that may be the most straightforward step of the process.

That’s because numbers behave in a logical way. Humans, on the other hand—well, we can be way more complex. Yes, you need to do the math. But you also need to take a second step that goes beyond hard data and number crunching.

The art of pricing requires you to also calculate how much human behavior impacts the way we perceive price.

To do so, you’ll need to examine different pricing strategy examples, their psychological impact on your customers, and how to price your product.

Here is what we’ll cover in this video:
00:00 Introduction
01:12 Cost-Plus Pricing
01:55 Competitive Pricing
02:46 Price Skimming
03:32 Penetration Pricing
04:49 Value Based Pricing
05:37 Loss Leader Pricing
06:23 Bundle Pricing
06:51 Anchor Pricing

► Marketing is a deep topic. So if you’re interested in learning more, register using the link below to gain access to a free 30 minute webinar that will help you level up your marketing by changing the way you think about your store’s marketing funnel. Learn how to go from first day to first sale in this free training course.

►The Price Is Right: 13 Strategies for Finding the Ideal Price for Your Products

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