Product Pricing (2024)

FAQs

How to answer pricing questions? ›

The best way to handle premature pricing questions is to point out that pricing depends on their unique needs. Explain that there are different price points and costs may be dependent on sales volume, functionality, level of customer support required, add-ons and other variables.

In your questions, provide survey respondents with multiple price ranges, placing your desired target near the middle. Examples of willingness to pay questions: Open-ended question: How much would you be willing to pay for this product?

“There are three key questions that must be addressed for defining any pricing strategy, and each must be asked from the customer's perspective, not your own. Number 1: What is the alternative? Number 2: Are you better or worse? And Number 3: Why should I expletive care?”

Embrace what the client has said, and agree with them: “yes, you can get this done for less from someone else. In fact, if this isn't a good fit, then that's alright.” Then, pivot: “But, if things should change on your end, and you're not receiving the quality of work you want, please reach back out.”

Expected Cost: Open-Ended

If you want to find out what price a consumer would expect to see on your product, one way to ask is with a simple open-ended question: “What would you expect to pay for this product?” The answer format is an open text box so the respondent can fill in any number they choose.

"How much does this cost?" "How much is this?" "What does this cost?" Replace 'this' with 'it' if you're already talking about the item.

The 3 C's of Pricing Strategy

Setting prices for your brand depends on three factors: your cost to offer the product to consumers, competitors' products and pricing, and the perceived value that consumers place on your brand and product vis-a-vis the cost.

What are the 4 P's price product? ›

The four Ps of marketing—product, price, place and promotion—serve as a framework for marketing success. Sometimes referred to as the marketing mix, the four Ps help guide businesses in the creation of winning business ideas that deliver what customers want, where and how they want it at a price that's most appealing.

Enlighten the customers on the value they'll get

Before providing the price, make sure you're transparent on what the customers are getting in exchange for their money. In short, provide the value before providing the price. Don't go straight to discount if they ask. Instead, trade on value not price.