So you’re about to launch a new product. More and more, marketing and growth teams have become integrated into the pricing decision, which invariably leads to greater product market fit. There are many philosophies on how to price a product, but if you are in the trenches and are either about to launch a new company or new product in it’s category, reflecting on these questions should provide some direction:
(Note: some of these questions are geared toward service-based companies, feel free to alter or skip ‘irrelevant’ questions)
1. What do the competitor's charge for the same/similar service?
2. Should we charge more for added features?
3. Should we charge more for superior service?
A. basic package, ultimate package
4. Should we charge for multiple users within the same household?
5. Should we charge customers early contract termination?
6. Should we offer account freezing options?
7. Should we charge based on consumption?
8. What is the optimum price?
A. The price that optimizes number of sales
B. The price the optimizes profit
9. Who are the decision makers for the purchase?
A. The same as the users?
B. The head of the house?
C. The children of the house?
10. How do future customers come to contact with product?
11. Should we use a price skimming strategy?
12. What will my brand replace?
13. What is the optimum price for my brand?
14. What offers will we give customers? What promotions?