How can you determine the right price point to persuade a customer?

Knowing the customer, their current needs, and how they make buying decisions is very essential in product or service sales. The RROI (Relative Return on Investment) matrix must be simulated when you are deciding your pricing strategy.

Evaluate your costs. Determine your desired profit. Understand your customers. Research your competition. Choose a pricing strategy. Monitor your prices and adjust accordingly

Here is a straight forward approach 1. Know the market 2. Analyze your competitors 3. Identify the USPs of your product/service 4. Evaluate your customer 5. Negotiate and close

To determine the optimal price point that persuades customers, conduct market research to understand competitor pricing and customer expectations. Analyze the perceived value of your product or service, considering quality, features, and uniqueness. Utilize pricing strategies such as cost-plus, value-based, or psychological pricing. Regularly assess customer feedback and market trends to adjust pricing accordingly. Striking a balance between perceived value and competitive pricing enhances the likelihood of customer persuasion.

Contar con mayor información del mercado; las competencias, sus precios, condiciones comerciales. También las condiciones externas como la economía, regulaciones, etc. Otra consideración importante a tener en cuenta es la segmentación a donde va a estar dirigido el producto y qué % de cobertura es la estimada o buscada. Como se quiera posicionarse sobre el líder del mercado, o si es líder, sobre los competidores Si se puede probar en algunos clientes para ir analizando y sacando conclusiones, sería importante para determinar el precio final al salir al 100% del mercado foco. Es clave la complementación de Comunicaciones y Trade Marketing ya los resultados dependen mucho del apoyo de esas áreas de la compañía

Think about how long it will take to repay the investment (ROI) a customer has made into your product or service. The competitor landscape may be different from market to market as well

Create a value prop that is “Concise”, “Clear” and “Communicable”. Decision makers are very informed these days and very well-researched. To get differentiated, articulate a story of the Operational and Strategic benefits of your products and services. Your pricing is an outcome of perceived value and the opportunity associated with it.

Put yourself in the buyers shoes when testing pricing, what features are important (and worth paying for) and which ones don't matter as much (and therefore are worth, less) Cheaper isn't always better, think about the perceived value of your product

"Too High" and "Too Expensive" are the most common feedback from the prospective buyer. Understand the reference point when such feedback is given. Before getting into giving upfront price discounts, explore the possibilities to strike the deal. For example change in suited business model, or a change in the payment plan.

Determining the right price to a customer involves a careful consideration of various factors, including customer perceptions, market conditions, product value and business goals and it needs a thorough understanding of the 1-Competitive Analysis 2-Market segmentation 3-Cost and value-based analysis 4-Criticality of the product and process 5-Key features and benefits 6-Psychological & Dynamics pricing 7-Market feedback 8-Product life and services requirements E.g- Launching a new water filter price keeps a check of the all-filtration technology offered in the market, longevity of filter life, tank capacity, nature of water, competition pricing and service supports.