Are you a new business or start up?

Are you stumped when it comes to

pricing your products or services?

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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Using The Internet For New Product Pricing Strategies

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