You can determine your price!
When you first develop your product, the first challenge you may have is how to set a price that customers will be willing to pay for the product. This will happen if your product is not a commodity product. If your product is a commodity product, you may not have this problem. The product is already in the market. All you need do is to carry out price survey and flow with what others are charging for their products.
However, I want to mention that even though your product is not totally new in the market, you can still make it unique. By making your product unique, you will be able to set a price that is different from what is already available in the market. That is where creativity comes in. So, if you are creative about your product design and development, customers will see the product as a unique product. This will make them to be ready to pay the price you may set for your product. The big question now is: How can you make your product unique so that customers will be willing to pay your price even when it is slightly higher than what your competitors charge? Doing the three things listed and explained below will help you achieve that.
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Add new function: Take note, I did not just say add new features. New features may not necessarily translate to new function. If you can succeed in creating a product that can perform a function that your competitors’ products cannot do, you have succeeded in creating a unique product. If your customers can actually see that your product can perform the function which actually adds more value to them, they will buy your product. They will be willing to pay extra for the added benefits your product offers them.
Make your product more reliable: I don’t like disappointment and I believe many people don’t too. If you go to the market, you will see a lot of substandard products. For example, there are different electric bulbs in the market. I have tried a lot of them. There are some that cannot even last for one month. Even though the price seems cheap, by the time you add the money you spend on buying the product repeatedly, you will realise that it is very expensive in the long run. Ever since I discovered a particular brand that last longer, I have been buying it. Though the price is higher, I gladly pay for it. If you can make your product more reliable, people will soon know your product for its reliability. By this, you will be able to charge higher price and the customers will still like to pay for it.
Make your product more convenient: When you are preparing to launch a product, it is good to examine how you can remove any complexity from it. The reason Windows Operating System sells more in the market is because it is users friendly. You should have your customers in mind. You may know how best to use your product. But are your customers able to use it effectively on their own? If your product is more convenient to use by your customers than that of your competitors, your product cannot be seen as a commodity product any longer. Other people will not be able to compete with you in pricing.
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If you are able to achieve any of the three points mentioned above, you will be able to fix your own price for your product. Nevertheless, your price has to be reasonable. If your price is too high, customers may consider the alternatives. Also, you should not set your price too low. If you do, you may be leaving too much money on the table. Whatever the price you set for your product, it is important that the price covers all your costs and overheads. Besides, the price should be able to return enough margin and profits that will justify your investments. If you add value to your customers, they will be willing to patronise you.