BUSINESS TALK

THE PRODUCT AND PRICING CHALLENGE!

What do you have to sell? At what price?

Seemingly an easy question with simple answers? Not so. The answers require a great deal of thought such as what position do you want to hold in the market? Products that are the cheapest? Or being perceived as great value for money? Or, taken a step further - a high quality product at a significantly higher price than the average market price?

Whatever your pricing strategy and philosophy might be, the critical challenge is to match the product and its selling price with the specific demands of your potential customer within your target market. The buyer somehow needs to credibly believe that your product is indeed a sensible buy which is justified by the asking price or in other market circumstances, meets the demand for buying.

Right product, right price... to the right people

The bottom line is that you can ill afford to position your product within any pricing range or bracket without a clear understanding of your target market and what it is that they demand in terms of price. The critical task is to do your market research, know your competition and establish some kind of a differentiating factor that will mobilise the customer in favour of your products. These factors ultimately pointing back to offering the right product at the right price. And yes, to the right people.

It's often those rather obvious or even hidden product characteristics that will finally determine if the price is acceptable in the eyes of the buyer. Getting it right is often some kind of a strange mystery, one that is often tackled by an appropriate marketing and communications strategy that needs to convince the market place that your products are the logical choice.

Some basic steps

In summary a few basic steps to apply in hopefully getting it right;

  1. Select your target market and study their needs and demands;
  2. Compare your product and pricing approach with the competition;
  3. Develop your product's competiveness - even if it is purely a price factor;
  4. Support your product positioning and pricing approach with sound marketing practises;
  5. Never become complacent.

Remember that the right product at the right price will sell as long as there is a market - but without a captive or developing market even a great product at the most affordable price will not sell. So never neglect staying in touch with your market!

Still selling well?